Look At Analyst Expectations For A Better Read On DraftKings Inc. (NASDAQ: DKNG)


    The Vanguard Group, Inc. recently announced the acquisition of new stake in DraftKings Inc. (NASDAQ:DKNG). This fresh investment now brings its stake to 6.38% valued currently at $751.46 million. In addition, Raine Capital LLC raised its holdings by 21.72 million to 21.72 million shares.

    With over 18.41 million DraftKings Inc. (DKNG) shares trading Friday and a closing price of $36.32 on the day, the dollar volume was approximately $668.67 million. The shares have shown a positive weekly performance of 3.33% and its price on 08/28/20 lost nearly -7.01%. Currently, there are 353.84M common shares owned by the public and among those 278.59M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 12 analysts who have offered their price forecasts for DKNG have a consensus price objective of $47.45. The analysts have set the share’s price value over the next 12 months at a high of $60.00 and a low of $35.00 should the stock experience a downside. Incidentally, analysts’ outlook for the DraftKings Inc. stock is 1.90 for the next 12 months. The average price target is 21.81% above its last price level and an upside to the estimated low will see the stock lose -3.77% over that period. But an upside of 39.47% will see the stock hit the forecast high price target while mean target price for the stock is $50.00.

    The top 3 mutual fund holders in DraftKings Inc. are American Funds Small Cap World Fu, Vanguard Total Stock Market Index, and Vanguard Mid Cap Index Fund. American Funds Small Cap World Fu owns 7.86 million shares of the company’s stock, all valued at over $262.44 million. The company bought an additional 7.86 million shares recently to bring their total holdings to about 2.23% of the shares outstanding. Vanguard Total Stock Market Index sold 19031.0 shares to see its total holdings shrink to 7.51 million shares valued at over $250.75 million and representing 2.13% of the shares outstanding. Vanguard Mid Cap Index Fund sold 50712.0 shares to bring its total holdings to over 6.47 million shares at a value of $215.98 million. Vanguard Mid Cap Index Fund now owns shares totaling to 1.83% of the shares outstanding.

    Shares of DraftKings Inc. (NASDAQ: DKNG) opened at $37.99, down -$1.07 from a prior closing price of $39.06. However, the script later closed the day at $36.32, down -7.01%. The company’s stock has a 5-day price change of 3.33% and -16.89% over the past three months. It has a 12-month low price of $9.84 and touched a high of $44.79 over the same period. Currently, 18.41 million shares have been traded, compared to an average intraday trading volume of 13.85 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 3.85%, 3.85%, and 65.44% respectively.

    Institutional ownership of DraftKings Inc. (NASDAQ: DKNG) shares accounts for 51.50% of the company’s 353.84M shares outstanding. Mutual fund holders own 27.36%, while other institutional holders and individual stakeholders account for 28.78% and 18.64% respectively.

    It has a market capitalization of $13.89B. The stock’s trailing 12-month PE ratio is 660.36, while the earnings-per-share (ttm) stands at $0.06. The company has a PEG of 16.51 and a Quick Ratio of 0.20 with the debt-to-equity ratio at 0.00. Price movements for the stock have been influenced by the stock’s volatility, which stands at 8.40% over the week and 7.13% over the month.

    Analysts forecast that DraftKings Inc. (DKNG) will achieve an EPS of -$0.28 for the current quarter, -$0.15 for the next quarter and -$0.67 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.36 while analysts give the company a high EPS estimate of -$0.2.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 12 brokerage firm advisors rate DraftKings Inc. (DKNG) as a “Strong Buy” at a consensus score of 1.90. Specifically, 9 Wall Street analysts polled rate the stock as a buy, while 3 of the 12 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the DKNG, a number of firms have released research notes about the stock. Morgan Stanley stated their Equal-Weight rating for the stock in a research note on August 28, 2020, with the firm’s price target at $37. The Benchmark Company coverage for the DraftKings Inc. (DKNG) stock in a research note released on August 17, 2020 offered a Buy rating with a price target of $45. The Benchmark Company was of a view on July 31, 2020 that the stock is Buy, while Stephens gave the stock Overweight rating on July 01, 2020, issuing a price target of $52. Rosenblatt on their part issued Buy rating on June 26, 2020.


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