DraftKings (NASDAQ:DKNG) Posts Quarterly Earnings Results

DraftKings (NASDAQ:DKNG) released its earnings results on Thursday. The company reported ($0.30) earnings per share for the quarter, missing the consensus estimate of ($0.28) by ($0.02), Briefing.com reports. The firm had revenue of $1.18 billion during the quarter, compared to analysts’ expectations of $1.12 billion. DraftKings had a negative return on equity of 87.24% and a negative net margin of 21.88%. The business’s revenue was up 52.7% on a year-over-year basis. During the same period last year, the business earned ($0.87) earnings per share.

DraftKings Price Performance

DKNG traded down $1.21 during midday trading on Friday, reaching $41.82. 27,173,021 shares of the company’s stock were exchanged, compared to its average volume of 11,728,833. DraftKings has a one year low of $21.07 and a one year high of $49.57. The firm has a market capitalization of $36.24 billion, a price-to-earnings ratio of -23.79 and a beta of 1.87. The business has a 50-day simple moving average of $43.57 and a two-hundred day simple moving average of $38.70. The company has a quick ratio of 1.34, a current ratio of 1.34 and a debt-to-equity ratio of 1.49.

Analysts Set New Price Targets

Several analysts have issued reports on the stock. Stifel Nicolaus raised shares of DraftKings from a “hold” rating to a “buy” rating and boosted their target price for the company from $40.00 to $45.00 in a research note on Friday, January 19th. JPMorgan Chase & Co. restated an “overweight” rating and set a $55.00 price objective on shares of DraftKings in a research report on Thursday, March 28th. Bank Of America (Bofa) upped their target price on DraftKings from $45.00 to $50.00 in a report on Thursday, February 15th. Needham & Company LLC reissued a “buy” rating and issued a $58.00 price target on shares of DraftKings in a research report on Friday. Finally, Piper Sandler boosted their price objective on shares of DraftKings from $40.00 to $50.00 and gave the company an “overweight” rating in a research report on Tuesday, February 13th. Two investment analysts have rated the stock with a sell rating, one has given a hold rating and twenty-five have issued a buy rating to the stock. According to MarketBeat, DraftKings currently has an average rating of “Moderate Buy” and a consensus target price of $47.45.

Insider Activity

In related news, insider R Stanton Dodge sold 686,101 shares of the firm’s stock in a transaction that occurred on Thursday, February 8th. The stock was sold at an average price of $43.06, for a total transaction of $29,543,509.06. Following the completion of the transaction, the insider now owns 200,239 shares in the company, valued at approximately $8,622,291.34. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. In other DraftKings news, insider Jason Robins sold 200,000 shares of the business’s stock in a transaction dated Monday, April 22nd. The shares were sold at an average price of $40.91, for a total value of $8,182,000.00. Following the transaction, the insider now directly owns 3,043,231 shares in the company, valued at $124,498,580.21. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, insider R Stanton Dodge sold 686,101 shares of the company’s stock in a transaction dated Thursday, February 8th. The stock was sold at an average price of $43.06, for a total transaction of $29,543,509.06. Following the sale, the insider now directly owns 200,239 shares in the company, valued at $8,622,291.34. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 1,086,101 shares of company stock worth $45,903,509. Company insiders own 51.19% of the company’s stock.

DraftKings Company Profile

DraftKings Inc operates as a digital sports entertainment and gaming company in the United States and internationally. It provides online sports betting and casino, daily fantasy sports, media, and other consumer products, as well as retails sportsbooks. The company also engages in the design and development of sports betting and casino gaming software for online and retail sportsbooks, and iGaming operators.