DraftKings Inc. [NASDAQ: DKNG] gained 9.08% or 3.25 points to close at $39.06 with a heavy trading volume of 26657105 shares. The company report on August 14, 2020 that DraftKings Reports Strong Q2 Revenue Despite Limited Sports Calendar.
Q2 2020 GAAP Revenue of $71M; Pro Forma Revenue of $75M.
DraftKings Inc. (Nasdaq: DKNG) (“DraftKings” or the “Company”) today reported financial results for the second quarter of 2020. For the three months ended June 30, 2020, DraftKings reported GAAP revenue of $71 million compared to $57 million during the same period in 2019. On a pro forma basis, including the effect of the Company’s business combination with SBTech (Global) Limited and Diamond Eagle Acquisition Corp. as if it had been completed on January 1, 2019, revenue would have been $75 million in the second quarter of 2020, compared to $83 million during the same period in 2019. DraftKings ended the second quarter of 2020 with over $1.2 billion in cash and no debt on its balance sheet.
It opened the trading session at $35.88, the shares rose to $40.06 and dropped to $35.43, the range by which the price of stock traded the whole day. The daily chart for DKNG points out that the company has recorded 132.09% gains over the past six months. However, it is still -296.95% lower than its most recent low trading price.
If we look at the average trading volume of 13.55M shares, DKNG reached to a volume of 26657105 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about DraftKings Inc. [DKNG]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for DKNG shares is $46.09 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on DKNG stock is a recommendation set at 1.90. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
The Benchmark Company have made an estimate for DraftKings Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on August 17, 2020. While these analysts kept the previous recommendation, The Benchmark Company raised their target price to Buy. The new note on the price target was released on July 31, 2020, representing the official price target for DraftKings Inc. stock. Previously, the target price had yet another raise to $52, while Stephens analysts kept a Overweight rating on DKNG stock.
The Average True Range (ATR) for DraftKings Inc. is set at 2.55, with the Price to Sales ratio for DKNG stock in the period of the last 12 months amounting to 40.15. The Price to Book ratio for the last quarter was 5.01, with the Price to Cash per share for the same quarter was set at 0.00.
Trading performance analysis for DKNG stock
DraftKings Inc. [DKNG] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 4.97. With this latest performance, DKNG shares gained by 11.23% in over the last four-week period, additionally plugging by 132.09% over the last 6 months .
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for DKNG stock in for the last two-week period is set at 61.91, with the RSI for the last a single of trading hit 66.43, and the three-weeks RSI is set at 58.86 for DraftKings Inc. [DKNG]. The present Moving Average for the last 50 days of trading for this stock 35.04, while it was recorded at 36.52 for the last single week of trading, and 21.66 for the last 200 days.
DraftKings Inc. [DKNG]: A deeper dive into fundamental analysis
DraftKings Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.20 and a Current Ratio set at 0.20.
DraftKings Inc. [DKNG]: An earnings per share (EPS) analysis
The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for DKNG. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for DraftKings Inc. go to 40.00%.
An analysis of insider ownership at DraftKings Inc. [DKNG]
There are presently around $7,146 million, or 51.50% of DKNG stock, in the hands of institutional investors. The top three institutional holders of DKNG stocks are: VANGUARD GROUP INC with ownership of 22,640,839, which is approximately New of the company’s market cap and around 10.10% of the total institutional ownership; RAINE CAPITAL LLC, holding 21,715,872 shares of the stock with an approximate value of $848.22 million in DKNG stocks shares; and PRICE T ROWE ASSOCIATES INC /MD/, currently with $672.55 million in DKNG stock with ownership of nearly New of the company’s market capitalization.
271 institutional holders increased their position in DraftKings Inc. [NASDAQ:DKNG] by around 166,256,555 shares. Additionally, 48 investors decreased positions by around 13,969,849 shares, while 3 investors held positions by with 2,730,426 shares. The mentioned changes placed institutional holdings at 182,956,830 shares, according to the latest SEC report filing. DKNG stock had 230 new institutional investments in for a total of 151,229,843 shares, while 22 institutional investors sold positions of 7,499,964 shares during the same period.