DraftKings Inc. (DKNG) Stock: Should Investors Follow These Insider Trades?

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DraftKings Inc. (NASDAQ:DKNG) saw an upside of 4.90% to close Monday at $14.56 after adding $0.68 on the day. The 5-day average trading volume is 11,167,380 shares of the company’s common stock. It has gained $14.71 in the past week and touched a new high 2 times within the past 5 days. An average of 10,628,670 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 13,371,284.

DKNG’s 1-month performance is 23.08% or $3.03 on its low of $10.69 reached on 12/28/22. The company’s shares have touched a 52-week low of $9.77 and high of $25.01, with the stock’s rally to the 52-week high happening on 01/18/23. YTD, DKNG has achieved 27.83% or $3.17 and has reached a new high 9 times. However, the current price is down -41.78% from the 52-week high price.

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Insider Transactions

DKNG stock investors last saw insider trading activity on Mar 16.Robins Jason () most recently sold 320,356 shares at $17.38 per share on Mar 16. This transaction cost the insider $5,567,490., Robins Jason, sold 338,027 shares at a price of $15.58 on Mar 15. Then, on Mar 09, Kalish Matthew sold 280,887 shares at a price of $17.83 per share. This transaction amounted to $5,008,215.

Valuation Metrics

DKNG stock has a beta of 1.81. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 3.40 while the price-to-book (PB) in the most recent quarter is 4.55.

DraftKings Inc.’s quick ratio for the period ended September 29 was 1.70, with the current ratio over the same period at 1.70. As well, the company’s long term debt to equity for the quarter ending September 29 was 0.87, while the total debt to equity was 0.87. In terms of profitability, the gross margin trailing 12 months is 32.60%. The firm’s gross profit as reported stood at $501.86 million against revenue of $1.3 billion.

Earnings Surprise

For the quarterly period ending September 29 this year, Net income and sales went up compared to those figures reported in the previous quarter. Net income shrunk -20.99% to -$450.49 million, while revenue of -$217.1 million was 51.81% off the previous quarter. Analysts expected DKNG to announce -$1.04 per share in earnings in its latest quarter, but it posted -$1, representing a 3.80% surprise. EBITDA for the quarter stood at more than -$336.22 million. DKNG stock balance sheet for the quarter ending September 29 shows that total liabilities totaled 2.39 billion, with total debt at $1.33 billion. Shareholders hold equity totaling $801.68 million.

Let’s look briefly at DraftKings Inc. (DKNG) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 23 January was 70.95% to suggest the stock is trending Overbought, with historical volatility in this time period at 41.96%.

The stock’s 5-day moving average is $13.99, reflecting a +3.19% or $0.45 change from its current price. DKNG is currently trading +23.70% above its 20-day SMA, -11.76% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +16.02% and SMA200 by-23.57%.

Stochastic %K and %D was 80.09% and 78.32% and the average true range (ATR) pointed at 0.69. The RSI (14) points at 63.68%, while the 14-day stochastic is at 95.98% with the period’s ATR at 0.72. The stock’s 9-day MACD Oscillator is pointing at 0.24 and 1.00 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for DraftKings Inc. (NASDAQ: DKNG), ROTH Capital downgraded it to a Neutral rating. They previously had a Buy rating on the stock. Analysts offering their rating for DKNG stock have a consensus rating for the stock as Overweight. Currently, 2 brokerage advisors rate DKNG as a “sell,”, while 12 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 2 rates the stock as overweight while 15 have offered a “buy” rating.

What is DKNG’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $12.00 and a high of $48.00, with their median price target at $19.00. Looking at these predictions, the average price target given by analysts is for DraftKings Inc. (DKNG) stock is $20.14.

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