DraftKings Inc. (NASDAQ:DKNG) Forecasted to Post Q3 2024 Earnings of ($0.47) Per Share

DraftKings Inc. (NASDAQ:DKNG) – Equities researchers at Northland Capmk cut their Q3 2024 earnings per share (EPS) estimates for DraftKings in a report issued on Monday, August 5th. Northland Capmk analyst G. Gibas now forecasts that the company will post earnings per share of ($0.47) for the quarter, down from their previous forecast of ($0.34). The consensus estimate for DraftKings’ current full-year earnings is ($0.31) per share. Northland Capmk also issued estimates for DraftKings’ FY2024 earnings at ($0.41) EPS, Q1 2025 earnings at ($0.05) EPS, Q2 2025 earnings at $0.10 EPS, Q3 2025 earnings at ($0.26) EPS, Q4 2025 earnings at $0.50 EPS and FY2025 earnings at $0.31 EPS.

DraftKings (NASDAQ:DKNG) last issued its quarterly earnings data on Thursday, August 1st. The company reported $0.12 earnings per share for the quarter, beating analysts’ consensus estimates of ($0.01) by $0.13. DraftKings had a negative net margin of 9.45% and a negative return on equity of 49.31%. The company had revenue of $1.10 billion for the quarter, compared to the consensus estimate of $1.11 billion. During the same quarter in the prior year, the firm earned ($0.17) earnings per share. The firm’s revenue for the quarter was up 26.2% compared to the same quarter last year.

Other equities analysts also recently issued research reports about the stock. Wells Fargo & Company dropped their price objective on shares of DraftKings from $53.00 to $47.00 and set an “overweight” rating on the stock in a report on Monday, August 5th. Deutsche Bank Aktiengesellschaft lifted their price target on shares of DraftKings from $34.00 to $35.00 and gave the stock a “hold” rating in a research note on Monday, May 6th. BMO Capital Markets decreased their target price on DraftKings from $54.00 to $48.00 and set an “outperform” rating on the stock in a report on Friday, August 2nd. UBS Group lifted their target price on DraftKings from $56.00 to $60.00 and gave the company a “buy” rating in a research report on Wednesday, May 15th. Finally, Guggenheim reduced their price target on DraftKings from $53.00 to $52.00 and set a “buy” rating for the company in a research report on Wednesday, June 26th. One research analyst has rated the stock with a sell rating, two have given a hold rating and twenty-four have issued a buy rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $49.56.

DraftKings Stock Performance

DraftKings stock traded down $0.20 during mid-day trading on Thursday, reaching $30.34. 8,549,253 shares of the stock traded hands, compared to its average volume of 10,924,932. The stock has a market capitalization of $26.37 billion, a PE ratio of -25.71 and a beta of 1.81. The company has a debt-to-equity ratio of 1.51, a current ratio of 1.34 and a quick ratio of 1.34. The business’s 50-day moving average is $37.14 and its 200-day moving average is $40.75. DraftKings has a 12-month low of $25.41 and a 12-month high of $49.57.

Hedge Funds Weigh In On DraftKings

Several institutional investors have recently bought and sold shares of the business. Transcendent Capital Group LLC bought a new position in shares of DraftKings in the 4th quarter worth $26,000. Montag A & Associates Inc. bought a new position in DraftKings in the fourth quarter worth about $29,000. LRI Investments LLC purchased a new stake in shares of DraftKings during the first quarter valued at about $31,000. LifeSteps Financial Inc. bought a new stake in shares of DraftKings in the 1st quarter valued at about $33,000. Finally, Concord Wealth Partners grew its position in shares of DraftKings by 140.2% in the 1st quarter. Concord Wealth Partners now owns 776 shares of the company’s stock worth $35,000 after buying an additional 453 shares during the last quarter. 37.70% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at DraftKings

In other DraftKings news, insider Jason Robins sold 200,000 shares of the business’s stock in a transaction dated Thursday, August 8th. The shares were sold at an average price of $30.72, for a total value of $6,144,000.00. Following the completion of the sale, the insider now directly owns 2,699,815 shares of the company’s stock, valued at approximately $82,938,316.80. The transaction was disclosed in a filing with the SEC, which is available through this link. In other news, insider Jason Robins sold 200,000 shares of the firm’s stock in a transaction on Thursday, August 8th. The stock was sold at an average price of $30.72, for a total transaction of $6,144,000.00. Following the transaction, the insider now owns 2,699,815 shares in the company, valued at $82,938,316.80. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Paul Liberman sold 63,206 shares of the stock in a transaction dated Monday, July 15th. The stock was sold at an average price of $39.00, for a total transaction of $2,465,034.00. Following the transaction, the insider now owns 1,716,406 shares in the company, valued at $66,939,834. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 1,383,546 shares of company stock worth $52,889,617. Insiders own 51.19% of the company’s stock.

About DraftKings

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.