Morgan Stanley Lowers DraftKings (NASDAQ:DKNG) Price Target to $47.00

DraftKings (NASDAQ:DKNG) had its target price lowered by equities researchers at Morgan Stanley from $51.00 to $47.00 in a note issued to investors on Tuesday, Benzinga reports. The brokerage currently has an “overweight” rating on the stock. Morgan Stanley’s target price suggests a potential upside of 57.45% from the stock’s previous close.

A number of other research analysts have also recently weighed in on DKNG. Wells Fargo & Company dropped their price objective on shares of DraftKings from $53.00 to $47.00 and set an “overweight” rating for the company in a report on Monday, August 5th. Needham & Company LLC restated a “buy” rating and issued a $60.00 price objective on shares of DraftKings in a report on Monday, August 5th. Berenberg Bank upgraded shares of DraftKings to a “hold” rating in a report on Friday, May 31st. Oppenheimer dropped their price objective on shares of DraftKings from $58.00 to $55.00 and set an “outperform” rating for the company in a report on Monday, August 5th. Finally, Macquarie lowered their price target on shares of DraftKings from $52.00 to $50.00 and set an “outperform” rating for the company in a report on Monday, August 5th. One research analyst has rated the stock with a sell rating, two have given a hold rating and twenty-four have given a buy rating to the stock. Based on data from MarketBeat, DraftKings currently has a consensus rating of “Moderate Buy” and an average price target of $49.44.

DraftKings Price Performance

DraftKings stock opened at $29.85 on Tuesday. The company’s 50 day simple moving average is $37.02 and its 200-day simple moving average is $40.72. The company has a market capitalization of $25.95 billion, a price-to-earnings ratio of -25.30 and a beta of 1.81. DraftKings has a 1 year low of $25.41 and a 1 year high of $49.57. The company has a debt-to-equity ratio of 1.51, a quick ratio of 1.34 and a current ratio of 1.34.

DraftKings (NASDAQ:DKNG) last released its quarterly earnings results on Thursday, August 1st. The company reported $0.12 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.01) by $0.13. The business had revenue of $1.10 billion for the quarter, compared to the consensus estimate of $1.11 billion. DraftKings had a negative net margin of 9.45% and a negative return on equity of 49.31%. The business’s revenue was up 26.2% on a year-over-year basis. During the same period in the previous year, the firm earned ($0.17) EPS. As a group, equities research analysts expect that DraftKings will post -0.31 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Jocelyn Moore sold 1,450 shares of the company’s stock in a transaction on Wednesday, June 5th. The shares were sold at an average price of $35.92, for a total transaction of $52,084.00. Following the transaction, the director now directly owns 6,814 shares of the company’s stock, valued at approximately $244,758.88. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. In other news, insider Jason Robins sold 200,000 shares of the company’s stock in a transaction on Tuesday, May 21st. The shares were sold at an average price of $43.59, for a total transaction of $8,718,000.00. Following the transaction, the insider now directly owns 2,668,954 shares of the company’s stock, valued at approximately $116,339,704.86. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Jocelyn Moore sold 1,450 shares of the stock in a transaction dated Wednesday, June 5th. The shares were sold at an average price of $35.92, for a total transaction of $52,084.00. Following the completion of the sale, the director now directly owns 6,814 shares in the company, valued at $244,758.88. The disclosure for this sale can be found here. In the last quarter, insiders sold 1,383,546 shares of company stock worth $52,889,617. 51.19% of the stock is owned by insiders.

Institutional Investors Weigh In On DraftKings

A number of large investors have recently added to or reduced their stakes in DKNG. Norges Bank acquired a new stake in DraftKings in the 4th quarter valued at about $192,140,000. First Trust Advisors LP boosted its stake in shares of DraftKings by 148.2% during the 4th quarter. First Trust Advisors LP now owns 4,235,008 shares of the company’s stock worth $149,284,000 after purchasing an additional 2,528,503 shares during the last quarter. Eagle Asset Management Inc. acquired a new stake in shares of DraftKings during the 4th quarter worth about $87,829,000. Vanguard Group Inc. boosted its stake in shares of DraftKings by 6.0% during the 4th quarter. Vanguard Group Inc. now owns 39,263,918 shares of the company’s stock worth $1,384,053,000 after purchasing an additional 2,225,759 shares during the last quarter. Finally, Allspring Global Investments Holdings LLC boosted its stake in shares of DraftKings by 1,048.1% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 1,888,287 shares of the company’s stock worth $85,747,000 after purchasing an additional 1,723,819 shares during the last quarter. 37.70% of the stock is owned by institutional investors and hedge funds.

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.