DraftKings Inc. (NASDAQ:DKNG) is seeing strong growth in short interest


DraftKings Inc. (NASDAQ:DKNG – Get Free Report) saw a significant increase in short interest in December. As of December 15th, there were short sales totaling 26,570,000 shares, an increase of 6.6% from the November 30th total of 24,920,000 shares. Based on an average trading volume of 12,780,000 shares, the short interest ratio is currently 2.1 days.

Wall Street analysts weigh in

Several equities analysts recently commented on the stock. Argus raised their price objective on shares of DraftKings from $40.00 to $46.00 and gave the stock a “buy” rating in a research note on Monday, November 27th. Guggenheim raised their price objective on shares of DraftKings from $39.00 to $45.00 and gave the company a “buy” rating in a report on Wednesday, November 15th. Needham & Company LLC reiterated a “buy” rating and set a $50.00 price target on shares of DraftKings in a research note on Tuesday, December 26th. Barclays increased their target price on shares of DraftKings from $30.00 to $32.00 in a research note on Thursday, September 7th. Finally, JPMorgan Chase & Co. upgraded shares of DraftKings from a “neutral” rating to an “overweight” rating and raised their price target for the stock from $26.00 to 37 in a research report on Tuesday, September 26th $.00 raised. Three investment analysts have rated the stock with a sell rating, four have assigned a hold rating and twenty-one have assigned a buy rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $35.86.

Check out our latest analysis on DraftKings

Insider Buying and Selling at DraftKings

In other DraftKings news, insider Jason Robins sold 200,000 shares of the company’s stock in a transaction on Friday, October 20th. The shares were sold at an average price of $27.11, for a total value of $5,422,000.00. Following the completion of the sale, the insider now directly owns 3,811,351 shares in the company, valued at $103,325,725.61. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Additionally, CFO Jason Park sold 750,000 shares of DraftKings stock in a transaction on Tuesday, November 21st. The shares were sold at an average price of $38.27, for a total transaction of $28,702,500.00. Following the completion of the sale, the CFO now directly owns 105,217 shares of the company’s stock, valued at $4,026,654.59. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, available at this link. Also, insider Jason Robins sold 200,000 shares of DraftKings stock in a transaction on Friday, October 20th. The stock was sold at an average price of $27.11, for a total transaction of $5,422,000.00. Following the sale, the insider now owns 3,811,351 shares in the company, valued at $103,325,725.61. The disclosure for this sale can be found here. Insiders have sold a total of 2,408,800 shares of company stock worth $87,716,006 in the last three months. Company insiders own 55.92% of the company’s shares.

Institutional investors comment on DraftKings

Several major investors have recently increased or reduced their stakes in the company. Anchor Investment Management LLC acquired a new stake in DraftKings in the 4th quarter valued at approximately $332,000. Vanguard Group Inc. raised its stake in shares of DraftKings by 0.3% in the third quarter. Vanguard Group Inc. now owns 37,038,159 shares of the company’s stock valued at $1,090,403,000 after purchasing an additional 109,406 shares in the last quarter. Sunbelt Securities Inc. acquired a new stake in shares of DraftKings in the 3rd quarter valued at $73,000. B. Riley Wealth Advisors Inc. increased its holdings in shares of DraftKings by 65.0% in the 3rd quarter. B. Riley Wealth Advisors Inc. now owns 25,228 shares of the company’s stock valued at $743,000 after purchasing an additional 9,938 shares in the last quarter. Finally, Neo Ivy Capital Management acquired a new stake in shares of DraftKings in the 3rd quarter valued at $175,000. 32.84% of the shares are owned by hedge funds and other institutional investors.

DraftKings price performance

DKNG shares opened at $33.58 on Wednesday. DraftKings has a 52-week low of $10.98 and a 52-week high of $39.35. The company’s 50-day moving average price is $35.16 and its 200-day moving average price is $31.14. The company has a market cap of $28.85 billion, a P/E ratio of -15.40 and a beta of 1.87. The company has a short ratio of 1.29, a current ratio of 1.29 and a debt-to-equity ratio of 1.56.

DraftKings (NASDAQ:DKNG – Get Free Report) last announced its earnings results on Thursday, November 2nd. The company reported ($0.61) earnings per share for the quarter, topping the consensus estimate of ($0.69) by $0.08. DraftKings had a negative net margin of 30.41% and a negative return on equity of 96.17%. The company had revenue of $789.96 million for the quarter, compared to the consensus estimate of $702.26 million. On average, research analysts forecast that DraftKings will report EPS of -1.47 for the current fiscal year.

DraftKings Company Profile

(Get Free Report)

DraftKings Inc operates as a digital sports entertainment and gaming company in the United States and internationally. It offers online sports betting and casino, daily fantasy sports, media and other consumer products, and retail sports betting. The Company is also engaged in the design and development of sports betting and casino gaming software for online and retail sportsbooks and iGaming operators.

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