As of Wednesday close, DraftKings Inc.’s (NASDAQ:DKNG) stock was down -$0.01, moving down -0.03 percent to $30.08. The average number of shares traded per day over the past five days has been 9,187,180 shares. 1 time new highs have been achieved over the past 5 days, with a -$0.63 fall in that time frame. In the last twenty days, the average volume was 9,875,140, while in the previous 50 days, it was 11,957,136.
Since last month, DKNG stock rose 10.22%. Shares of the company fell to $26.60 on 08/21/23, 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 164.09% or $18.69, and marked a new high 37 times. However, the stock has declined by -12.79% since its 52-week high.
DKNG stock investors should be aware that DraftKings Inc. (DKNG) stock had its last reported insider trading activity 15 days ago on Sep 06. Dodge R Stanton, the Chief Legal Officer of the company, disposed of 29,086 shares for $30.00 on Sep 06. It resulted in a $872,580 divestment by the insider. Dodge R Stanton sold 23,691 shares at an average price of $30.00 on Sep 01. The insider now owns 648,773 shares following the transaction. On Aug 21, Robins Jason sold 250,000 shares at $27.00 apiece. The transaction was valued at $6,750,000.
Valuation Metrics
The stock’s beta is 1.81. Besides these, the trailing price-to-sales (P/S) ratio of 4.72, the price-to-book (PB) ratio of 13.67.
Financial Health
In the recent quarter, 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 recent quarter 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 recent year, 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. 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, 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 32.81%, the RSI 9-day stood at 47.19% on 20 September.
With respect to its five-day moving average, the current DraftKings Inc. price is down by -2.05% percent or -$0.63. At present, DKNG shares trade +10.43% above its 20-day simple moving average and +43.58% percent above its 100-day simple moving average. However, the stock is currently trading approximately +3.87% above its SMA50 and +93.81% above its SMA200.
Stochastic coefficient K was 44.09% and Stochastic coefficient D was 57.51%, while ATR was 1.19. Given the Stochastic reading of 28.01% for the 14-day period, the RSI (14) reading has been calculated as 50.69%. As of today, the MACD Oscillator reading stands at -0.53, while the 14-day reading stands at -0.21.
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 $35.71.
