Analyzing DraftKings Inc. (DKNG) By Technical Indicators

As of Thursday close, DraftKings Inc.’s (NASDAQ:DKNG) stock was up $1.1, moving up 10.71 percent to $11.37. The average number of shares traded per day over the past five days has been 35,178,383 shares. 1 time new highs have been achieved over the past 5 days, with a -$3.07 fall in that time frame. In the last twenty days, the average volume was 25,641,955, while in the previous 50 days, it was 24,106,674.

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Since last month, DKNG stock retreated -30.71%. Shares of the company fell to $9.77 on 05/12/22, the lowest level in the past month. A 52-week high of $64.58 was reached on 01/03/22 after having rallying from a 52-week low of $10.22. Since the beginning of this year, DKNG’s stock price has dropped by -58.61% or -$16.10, and marked a new high 1 time. However, the stock has declined by -82.39% since its 52-week high.

DraftKings Inc. (DKNG) last reported insider trading activity 58 days ago on Mar 16. Robins Jason, the of the company, disposed of 320,356 shares for $17.38 on Mar 16. It resulted in a $5,567,490 divestment by the insider. Robins Jason sold 338,027 shares at an average price of $15.58 on Mar 15. The insider now owns 4,574,193 shares following the transaction. On Mar 14, Director SLOAN HARRY bought 50,000 shares at $15.39 apiece. The transaction was valued at $769,500.

Financial Health

In the three months ended September 29, DraftKings Inc.’s quick ratio stood at 3.00, while its current ratio was 3.00, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending September 29 was 0.74, and the total debt-to-equity ratio was 0.74. On the profitability front, the trailing twelve-month gross margin is 38.70% percent. Based on annual data, DKNG earned $501.86 million in gross profit and brought in $1.3 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was -53.60%. Return on equity (ROE) for the past 12 months was -75.90%.

According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. DKNG’s revenue rose 25.15% to $473.33 million during the quarter, while net income inched up to $417.21 million. While analysts expected DraftKings Inc. to report -$1.06 quarterly earnings, the actual figure was -$1.35 per share, beating the consensus estimate by -27.40%. During the quarter, the company generated -$336.22 million in EBITDA. The liabilities of DraftKings Inc. were 2.39 billion at the end of its most recent quarter ended September 29, and its total debt was $1.32 billion. The value of shareholders’ equity is $801.68 million.

Technical Picture

This quick technical analysis looks at DraftKings Inc.’s (DKNG) price momentum. With a historical volatility rate of 145.17%, the RSI 9-day stood at 34.97% on 12 May.

With respect to its five-day moving average, the current DraftKings Inc. price is down by -21.26% percent or -$3.07. At present, DKNG shares trade -32.12% below its 20-day simple moving average and -60.34% percent below its 100-day simple moving average. However, the stock is currently trading approximately -50.97% below its SMA50 and -77.55% below its SMA200.

Stochastic coefficient K was 14.85% and Stochastic coefficient D was 9.67%, while ATR was 1.51. Given the Stochastic reading of 26.19% for the 14-day period, the RSI (14) reading has been calculated as 35.68%. As of today, the MACD Oscillator reading stands at -2.04, while the 14-day reading stands at -2.40.

Analyst Ratings

DraftKings Inc. downgraded its rating on DraftKings Inc. (NASDAQ: DKNG) to a Hold in a note to investors on March 07, 2022. The analysts firm previously had a Buy rating on the stock.DraftKings Inc. (DKNG) has been rated Overweight by analysts. According to 0 brokerage firms, DKNG is a sell, and 13 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 2 analysts rate DraftKings Inc. stock as buy, with 15 recommending it as overweight.

With a median target price of $25.00, the current consensus forecast for the stock is $13.00 – $60.00. Based on these forecasts, analysts predict DraftKings Inc. (DKNG) will achieve an average price target of $27.75.


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