DraftKings Inc. (NASDAQ:DKNG) finished Thursday with a subtraction of -$0.56 to close at $27.25, a downside of -2.01 percent. An average of 8,401,880 shares of common stock have been traded in the last five days. There was a gain of $0.88 in the past week, and it reached a new high 22 times over the past 12 months. The last 20 days have seen an average of 15,203,880 shares traded, while the 50-day average volume stands at 11,718,082.
DKNG stock has decreased by -13.52% in the last month. The company shares reached their 1-month lowest point of $25.41 on 08/18/23. With the stock rallying to its 52-week high on 08/04/23, shares of the company touched a low of $10.69 and a high of $34.49 in 52 weeks. It has reached a new high 37 times so far this year and achieved 139.24% or $15.86 in price. In spite of this, the price is down -20.99% from the 52-week high.
Insider Transactions
DKNG stock investors should be aware that DraftKings Inc. (DKNG) stock had its last reported insider trading activity 4 days ago on Aug 21. In this transaction, the insider spent $6,750,000., Robins Jason, disposed of 300,000 shares at a price of $32.10 on Aug 08. The insider now owns more than $9,629,930 worth of shares. Prior to that, Kalish Matthew went on to Sale 269,420 shares at $32.10 each on Aug 08. An amount of $8,649,375 was transacted.
Valuation Metrics
DraftKings Inc. (DKNG) stock’s beta is 1.83. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 4.18, the price-to-book (PB) ratio at 12.39.
Financial Health
The quick ratio of DraftKings Inc. for the three months ended June 29 was 1.60, and the current ratio was 1.60, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 1.23 and a total debt to equity ratio of 1.23 for the quarter ending June 29. Its gross profit as reported stood at $756.19 million compared to revenue of $2.24 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, DraftKings Inc.’s return on assets was -30.00%.
Earnings Surprise
In the quarter under review, the net income was up than the previous quarter. The company posted a net income of -$77.27 million in the quarter, while revenues of -$397.15 million were shrunk -180.96%. The analyst consensus anticipated DraftKings Inc.’s latest quarter earnings to come in at -$0.25 per share, but it turned out to be -$0.17, a 32.00% surprise. For the quarter, EBITDA amounted to -$20.78 million. Shareholders own equity worth $856.99 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at DraftKings Inc. (DKNG) price momentum. RSI 9-day as of the close on 24 August was 40.15%, suggesting the stock is Neutral, with historical volatility in this time frame at 36.13%.
As of today, DKNG’s price is $27.23 +3.34% or $0.88 from its 5-day moving average. DKNG is currently trading -11.98% lower than its 20-day SMA and +40.75% higher than its 100-day SMA. However, the stock’s current price level is +4.25% above the SMA50 and +140.94% above the SMA200.
The stochastic %K and %D were 23.37% and 21.23%, respectively, and the average true range (ATR) was 1.38. With the 14-day stochastic at 23.53% and the average true range at 1.41, the RSI (14) stands at 42.78%. The stock has reached -0.07 on the 9-day MACD Oscillator while the 14-day reading was at -0.87.
Analyst Ratings
JP Morgan upgraded DraftKings Inc. (NASDAQ: DKNG) to a a Neutral rating in its most recent analyst report. Previously, the stock was rated as an Underweight. The consensus rating for DraftKings Inc. (DKNG) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell DKNG, while 11 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 21 others rate it as a “buy”.
What is DKNG’s price target for the next 12 months?
Analysts predict a range of price targets between $22.50 and $44.00, with a median target of $37.00. Taking a look at these predictions, the average price target given by analysts for DraftKings Inc. (DKNG) stock is $35.67.
