As of Friday close, DraftKings Inc.’s (NASDAQ:DKNG) stock was up $1.75, moving up 5.84 percent to $31.74. The average number of shares traded per day over the past five days has been 17,854,881 shares. 2 times new highs have been achieved over the past 5 days, with a -$0.64 fall in that time frame. In the last twenty days, the average volume was 11,966,855, while in the previous 50 days, it was 10,573,388.
Since last month, DKNG stock rose 25.80%. Shares of the company fell to $24.97 on 07/06/23, the lowest level in the past month. A 52-week high of $32.45 was reached on 08/04/23 after having rallying from a 52-week low of $10.69. Since the beginning of this year, DKNG’s stock price has risen by 178.67% or $20.35, and marked a new high 37 times. However, the stock has declined by -2.19% since its 52-week high.
DKNG stock investors should be aware that DraftKings Inc. (DKNG) stock had its last reported insider trading activity 1 day ago on Aug 04. Kalish Matthew disposed of 311,207 shares for $34.30 on Aug 04. It resulted in a $10,674,400 divestment by the insider. Robins Jason sold 450,000 shares at an average price of $30.99 on Jul 21. The insider now owns 4,313,239 shares following the transaction. On Jul 21, Chief Legal Officer Dodge R Stanton sold 52,777 shares at $30.99 apiece. The transaction was valued at $1,635,559.
Valuation Metrics
The stock’s beta is 1.81. Besides these, the trailing price-to-sales (P/S) ratio of 5.41, the price-to-book (PB) ratio of 14.17.
Financial Health
In the three months ended March 30, DraftKings Inc.’s quick ratio stood at 1.50, while its current ratio was 1.50, 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 March 30 was 1.23, and the total debt-to-equity ratio was 1.23. On the profitability front, the trailing twelve-month gross margin is 34.70% percent. In the year ended March 30, EBITDA margin amounted to -59.92%, whereas operating margins totaled -53.50%. Based on annual data, DKNG earned $756.19 million in gross profit and brought in $2.24 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 -56.10%. Return on equity (ROE) for the past 12 months was -94.40%.
According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. DKNG’s revenue rose 45.79% to $855.13 million during the quarter, while net income inched up to $769.65 million. While analysts expected DraftKings Inc. to report -$0.89 quarterly earnings, the actual figure was -$0.87 per share, beating the consensus estimate by 2.20%. During the quarter, the company generated -$341.57 million in EBITDA. The liabilities of DraftKings Inc. were 2.72 billion at the end of its most recent quarter ended March 30, and its total debt was $1.32 billion. The value of shareholders’ equity is $854.88 million.
Technical Picture
This quick technical analysis looks at DraftKings Inc.’s (DKNG) price momentum. With a historical volatility rate of 47.49%, the RSI 9-day stood at 60.05% on 04 August.
With respect to its five-day moving average, the current DraftKings Inc. price is down by -1.98% percent or -$0.64. At present, DKNG shares trade +19.10% above its 20-day simple moving average and +74.20% percent above its 100-day simple moving average. However, the stock is currently trading approximately +30.78% above its SMA50 and +141.37% above its SMA200.
Stochastic coefficient K was 25.70% and Stochastic coefficient D was 35.63%, while ATR was 1.63. Given the Stochastic reading of 43.30% for the 14-day period, the RSI (14) reading has been calculated as 61.34%. As of today, the MACD Oscillator reading stands at -0.58, while the 14-day reading stands at -0.46.
Analyst Ratings
ROTH MKM reiterated its a Sell rating on DraftKings Inc. (NASDAQ: DKNG) in a note to investors. The analysts firm has however raised their price target to $20, representing a possible -76.33% increase in the stock price.
