There Is Clear Momentum For DraftKings Inc. (NASDAQ: DKNG)


After grabbing 22.52 million shares, the institutional investor is now in possession of 22.52 million shares of the Financial Company. The new investment brought the stake of investor firm to 6.38% having worth around $751.46 million. Moreover, Raine Capital LLC increased its share by 21.72 million to have a control over 21.72 million shares. And T. Rowe Price Associates, Inc. (I. raised its holdings to 17.22 million shares by acquiring 17.22 million shares or 4.88% of the stake.

DraftKings Inc. (DKNG) concluded trading on 08/19/20 at a closing price of $36.27, with 8.33 million shares of worth about $302.24 million changed hands on the day. Weekly performance of the stock remained positive as price took a surge of 7.50% during that period and on Wednesday the price saw a loss of about -2.53%. Currently the company’s common shares owned by public are about 353.84M shares, out of which, 244.59M shares are available for trading.

A deeper look into what the analysts at Wall Street are thinking about the price target of this stock provides us with the following: 12 analysts are covering the DKNG stock and their offered price forecasts bring an average price target of $46.09. Over the next 12 months, analysts forecasted that the stock’s price could jump as high as $60.00 and could fall to a lowest price of $26.00. Analysts also issued an outlook of 1.90 for the DraftKings Inc. stock for next 12 months. The stock’s current price level is 22.53% above of average price target set by the analysts, while a rise to estimated low would result in loss of -39.5 for the stock. However, touching the estimated high of $60.00 would mean a gain of 39.55% for the stock.

American Funds Small Cap World Fu, Vanguard Total Stock Market Index, and Vanguard Mid Cap Index Fund are the top 3 mutual funds which are holding stakes in DraftKings Inc. American Funds Small Cap World Fu is currently holding 7.86 million shares of worth totaling $262.44 million. The company recently came buying 7.86 million shares which brought its stake up to 2.23% of the company’s outstanding shares. Vanguard Mid Cap Index Fund, after buying 6.52 million shares, have now control over 1.85% of the stake in the company. It holds 6.52 million shares of worth $217.67 million.

DraftKings Inc. (NASDAQ: DKNG) started trading at $37.01, below -$0.2 from concluding price of the previous day. However, the stock finished the trading on the day at a closing price of $36.27, or with a loss of -2.53%. Stock saw a price change of 7.50% in past 5 days and over the past one month there was a price change of -3.41%. Over the period of past 52 weeks, stock dropped to lowest price of $9.84 but also hit the highest price of $44.79 during that period. While comparing its average daily trading volume of 13.56 million shares, we see that about 8.33 million changed hands on the day. The stock is currently trading 5.00% above its 20-day simple moving average (SMA20), while that difference is up 2.87% for SMA50 and it goes to 72.73% higher than SMA200.

The Vanguard Group, Inc. acquired 22.52 million shares of DraftKings Inc. having value of about $751.46 million. DraftKings Inc. (NASDAQ: DKNG) currently have 353.84M outstanding shares and institutions hold larger chunk of about 31.20% of that. Holding of mutual funds in the company is about 27.42% while other institutional holders and individual stake holders have control over 28.78% and 18.39% of the stake respectively.

The stock has a current market capitalization of $13.52B. PE ratio of stock for trailing 12 months is 659.45, while it has posted earnings per share of $0.06 in the same period. Its PEG reads 16.49 and has Quick Ratio of 0.20 while making debt-to-equity ratio of 0.00. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for DKNG, volatility over the week remained 7.08% while standing at 7.40% over the month.

Analysts are in expectations that DraftKings Inc. (DKNG) stock would likely to be making an EPS of -$0.22 in the current quarter, while forecast for next quarter ESPS is -$0.11 and it is -$0.64 for next year. For the current quarter EPS, analysts have given the company a lowest target -$0.3 which is -$0.18 at the higher side of the target for the same.

Analysts at 12 brokerage firms have issued recommendations for the DraftKings Inc. (DKNG)’s stock and average of those rates the stock at a “Strong Buy” and assign it a score of 1.90. Out of those 12 Wall Street analysts, 10 recommended a “Buy” rating, while 2 were in favor recommending the stock as a “Hold” and 0 analyst recommended the stock as “Sell”.

Digging deeper we find that several firms have released their research notes about the support levels of the stock. Most recent of them is a note released by The Benchmark Company on August 17, 2020 offering a Buy rating for the stock and assigned a target price range of between $47 and $45 to it. Coverage by The Benchmark Company stated DraftKings Inc. (DKNG) stock as a Buy in their note to investors on July 31, 2020, suggesting a price target of $47 for the stock. On July 01, 2020, Stephens Initiated their recommendations, while on June 26, 2020, Rosenblatt Initiated their ratings for the stock with a price target of $60. Stock get a Buy rating from Jefferies on June 22, 2020.


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