DraftKings Inc. (NASDAQ:DKNG) finished Thursday with a subtraction of -$0.09 to close at $28.93, a downside of -0.31 percent. An average of 12,163,760 shares of common stock have been traded in the last five days. There was a gain of $0.22 in the past week, and it reached a new high 28 times over the past 12 months. The last 20 days have seen an average of 11,084,950 shares traded, while the 50-day average volume stands at 12,066,336.
DKNG stock has increased by 0.14% in the last month. The company shares reached their 1-month lowest point of $27.20 on 09/25/23. 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 153.99% or $17.54 in price. In spite of this, the price is down -16.12% 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 23 days ago on Sep 06. In this transaction, the insider spent $872,580. Chief Legal Officer, Dodge R Stanton, disposed of 23,691 shares at a price of $30.00 on Sep 01. The insider now owns more than $710,730 worth of shares. Prior to that, Robins Jason went on to Sale 250,000 shares at $27.00 each on Aug 21. An amount of $6,750,000 was transacted.
Valuation Metrics
DraftKings Inc. (DKNG) stock’s beta is 1.80. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 4.47, the price-to-book (PB) ratio at 13.16.
Financial Health
The quick ratio of DraftKings Inc. for the recent quarter 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 1.29 and a total debt to equity ratio of 1.30 for the recent quarter. 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 -30.09%.
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%. 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 28 September was 46.00%, suggesting the stock is Neutral, with historical volatility in this time frame at 41.69%.
As of today, DKNG’s price is $28.20 +0.77% or $0.22 from its 5-day moving average. DKNG is currently trading -2.49% lower than its 20-day SMA and +17.70% higher than its 100-day SMA. However, the stock’s current price level is -6.22% below the SMA50 and +107.23% above the SMA200.
The stochastic %K and %D were 26.12% and 16.18%, respectively, and the average true range (ATR) was 1.26. With the 14-day stochastic at 31.74% and the average true range at 1.26, the RSI (14) stands at 47.07%. The stock has reached -0.39 on the 9-day MACD Oscillator while the 14-day reading was at -1.15.
Analyst Ratings
JP Morgan upgraded DraftKings Inc. (NASDAQ: DKNG) to a an Overweight rating in its most recent analyst report. Previously, the stock was rated as a Neutral. 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 23 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 $36.03.
