As of Thursday close, DraftKings Inc.’s (NASDAQ:DKNG) stock was down -$0.02, moving down -0.07 percent to $29.65. The average number of shares traded per day over the past five days has been 12,210,520 shares. 5 times new highs have been achieved over the past 5 days, with a $2.40 gain in that time frame. In the last twenty days, the average volume was 15,584,721, while in the previous 50 days, it was 11,993,494.
Since last month, DKNG stock retreated -1.95%. Shares of the company fell to $25.41 on 08/18/23, the lowest level in the past month. A 52-week high of $34.49 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 160.32% or $18.26, and marked a new high 37 times. However, the stock has declined by -14.03% since its 52-week high.
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DKNG stock investors should be aware that DraftKings Inc. (DKNG) stock had its last reported insider trading activity 11 days ago on Aug 21. Robins Jason, the of the company, disposed of 250,000 shares for $27.00 on Aug 21. It resulted in a $6,750,000 divestment by the insider. Robins Jason sold 300,000 shares at an average price of $32.10 on Aug 08. The insider now owns 4,019,223 shares following the transaction. On Aug 08, Kalish Matthew sold 269,420 shares at $32.10 apiece. The transaction was valued at $8,649,375.
Valuation Metrics
The stock’s beta is 1.81. Besides these, the trailing price-to-sales (P/S) ratio of 4.44, the price-to-book (PB) ratio of 13.48.
Financial Health
In the three months ended June 29, DraftKings Inc.’s quick ratio stood at 1.60, while its current ratio was 1.60, 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 June 29 was 1.23, and the total debt-to-equity ratio was 1.23. On the profitability front, the trailing twelve-month gross margin is 37.00% percent. In the year ended June 29, EBITDA margin amounted to -59.92%, whereas operating margins totaled -38.20%. 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 -97.40%.
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 46.72% to $769.65 million during the quarter, while net income inched up to $874.93 million. While analysts expected DraftKings Inc. to report -$0.25 quarterly earnings, the actual figure was -$0.17 per share, beating the consensus estimate by 32.00%. During the quarter, the company generated -$20.78 million in EBITDA. The liabilities of DraftKings Inc. were 2.59 billion at the end of its most recent quarter ended June 29, and its total debt was $1.32 billion. The value of shareholders’ equity is $856.99 million.
Technical Picture
This quick technical analysis looks at DraftKings Inc.’s (DKNG) price momentum. With a historical volatility rate of 25.85%, the RSI 9-day stood at 60.61% on 31 August.
With respect to its five-day moving average, the current DraftKings Inc. price is up by +8.81% percent or $2.40. At present, DKNG shares trade -1.13% below its 20-day simple moving average and +61.67% percent above its 100-day simple moving average. However, the stock is currently trading approximately +18.84% above its SMA50 and +99.26% above its SMA200.
Stochastic coefficient K was 88.63% and Stochastic coefficient D was 75.83%, while ATR was 1.23. Given the Stochastic reading of 83.30% for the 14-day period, the RSI (14) reading has been calculated as 55.70%. As of today, the MACD Oscillator reading stands at 1.17, while the 14-day reading stands at 1.40.
Analyst Ratings
JP Morgan upgraded its rating on DraftKings Inc. (NASDAQ: DKNG) to a Neutral in a note to investors on August 09, 2023. The analysts firm previously had an Underweight rating on the stock.DraftKings Inc. (DKNG) has been rated Overweight by analysts. According to 0 brokerage firms, DKNG is a sell, and 11 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate DraftKings Inc. stock as buy, with 21 recommending it as overweight.
With a median target price of $37.00, the current consensus forecast for the stock is $22.50 – $44.00. Based on these forecasts, analysts predict DraftKings Inc. (DKNG) will achieve an average price target of $35.67.
