DraftKings Inc. (NASDAQ: DKNG) stock jumped 2.47% on Tuesday to $14.92 against a previous-day closing price of $14.56. With 10.07 million shares changed hands, the volume of the stock remained lighter than its average volume of 15.91 million shares. During the session, the Gambling company that operates in wider Consumer Cyclical sector, reached to the highest price of $15.00 whereas the lowest price it dropped to was $14.33. The 52-week range on DKNG shows that it touched its highest point at $25.01 and its lowest point at $9.77 during that stretch. It currently has a 1-year price target of $20.45. Beta for the stock currently stands at 1.81.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of DKNG was up-trending over the past week, with a rise of 5.29%, but this was up by 26.76% over a month. Three-month performance surged to 12.94% while six-month performance rose 11.43%. The stock lost -23.33% in the past year, while it has gained 30.99% so far this year. A look at the trailing 12-month EPS for DKNG yields -3.44 with Next year EPS estimates of -2.42. For the next quarter, that number is -0.60. This implies an EPS growth rate of 6.10% for this year and 25.60% for next year.
Float and Shares Shorts:
At present, 448.33 million DKNG shares are outstanding with a float of 433.24 million shares on hand for trading. On Oct 13, 2022, short shares totaled 38.15 million, which was 8.50% higher than short shares on Sep 14, 2022. In addition to Mr. Jason D. Robins as the firm’s Co-Founder, Chairman & CEO, Mr. Paul Liberman serves as its Co-Founder, Pres of Global Technology & Product and Director.
Through their ownership of 56.53% of DKNG’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 4.75% of DKNG, in contrast to 27.39% held by mutual funds. Shares owned by individuals account for 24.87%. As the largest shareholder in DKNG with 7.60% of the stake, The Vanguard Group, Inc. holds 34,122,539 shares worth 34,122,539. A second-largest stockholder of DKNG, ARK Investment Management LLC, holds 24,707,394 shares, controlling over 5.51% of the firm’s shares. Nikko Asset Management Americas, is the third largest shareholder in DKNG, holding 13,193,066 shares or 2.94% stake. With a 3.65% stake in DKNG, the ARK Innovation ETF is the largest stakeholder. A total of 16,397,608 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.59% of DKNG stock, is the second-largest Mutual Fund holder. It holds 11,606,646 shares valued at 132.2 million. Vanguard Small Cap Index Fund holds 2.19% of the stake in DKNG, owning 9,830,427 shares worth 111.97 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for DKNG since 31 analysts follow the stock currently. There are 15 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 12 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With DKNG analysts setting a high price target of $48.00 and a low target of $12.00, the average target price over the next 12 months is $20.14. Based on these targets, DKNG could surge 221.72% to reach the target high and fall by -19.57% to reach the target low. Reaching the average price target will result in a growth of 34.99% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. DKNG will report FY 2022 earnings on 02/16/2024. Analysts have provided yearly estimates in a range of -$2.83 being high and -$3.93 being low. For DKNG, this leads to a yearly average estimate of -$3.21. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. DraftKings Inc. surprised analysts by -$0.01 when it reported -$1.00 EPS against a consensus estimate of -$0.99. The surprise factor in the prior quarter was $0.26. Based on analyst estimates, the high estimate for the next quarter is -$0.32 and the low estimate is -$0.81. The average estimate for the next quarter is thus -$0.61.
Summary of Insider Activity:
Insiders traded DKNG stock several times over the past three months with 24 Buys and 15 Sells. In these transactions, 280,160 shares were bought while 66,916 shares were sold. The number of buy transactions has increased to 163 while that of sell transactions has risen to 123 over the past year. The total number of shares bought during that period was 6,769,502 while 15,491,223 shares were sold.