DraftKings Inc. [NASDAQ: DKNG] loss -0.36% or -0.26 points to close at $71.72 with a heavy trading volume of 20404467 shares. The company report on March 16, 2021 that DraftKings Inc. Announces Pricing of $1.1 Billion Upsized Offering of Convertible Senior Notes.
DraftKings Inc. (Nasdaq: DKNG) (“DraftKings” or the “Company”) announced that it priced a private offering of $1.1 billion aggregate principal amount of 0% Convertible Senior Notes due 2028 (the “Notes”). The Notes will only be sold to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The Company also granted to the initial purchasers of the Notes a 13-day option to purchase up to an additional $165 million aggregate principal amount of Notes. The sale is expected to close on March 18, 2021, subject to satisfaction of customary closing conditions. The size of the offering was increased from the previously announced $1 billion aggregate principal amount of the Notes.
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The Notes will be unsecured senior obligations of the Company and will mature on March 15, 2028. The Notes will not bear regular interest, and the principal amount of the Notes will not accrete. The Notes will be convertible under certain circumstances and during certain periods into the Company’s Class A Common Stock (the “Common Stock”) at an initial conversion rate of 10.5430 shares of Common Stock per $1,000 principal amount of Notes, equivalent to an initial conversion price of approximately $94.85 per share, which represents an approximately 40% conversion premium over the last reported sale price of $67.75 per share of the Common Stock on The Nasdaq Global Select Market on March 15, 2021. Upon any conversion, the Company will settle its conversion obligation in cash, shares of its Common Stock, or a combination of cash and shares of Common Stock, at its election.
It opened the trading session at $73.19, the shares rose to $74.38 and dropped to $69.65, the range by which the price of stock traded the whole day. The daily chart for DKNG points out that the company has recorded 29.48% gains over the past six months. However, it is still -556.78% lower than its most recent low trading price.
If we look at the average trading volume of 16.39M shares, DKNG reached to a volume of 20404467 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 $72.55 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 2.20. 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 March 10, 2021. While these analysts kept the previous recommendation, The Benchmark Company raised their target price from $60 to $66. The new note on the price target was released on February 01, 2021, representing the official price target for DraftKings Inc. stock. Previously, the target price had yet another raise to $71, while Bernstein analysts kept a Outperform rating on DKNG stock. On January 26, 2021, analysts increased their price target for DKNG shares from 45 to 65.
The Average True Range (ATR) for DraftKings Inc. is set at 4.83, with the Price to Sales ratio for DKNG stock in the period of the last 12 months amounting to 43.60. The Price to Book ratio for the last quarter was 10.33, with the Price to Cash per share for the same quarter was set at 5.63.
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 5.86. With this latest performance, DKNG shares gained by 17.75% in over the last four-week period, additionally plugging by 29.48% over the last 6 months – not to mention a rise of 524.74% in the past year of trading.
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 61.04, with the RSI for the last a single of trading hit 61.79, and the three-weeks RSI is set at 60.51 for DraftKings Inc. [DKNG]. The present Moving Average for the last 50 days of trading for this stock 60.53, while it was recorded at 69.82 for the last single week of trading, and 47.19 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 4.00 and a Current Ratio set at 4.00.
DraftKings Inc. [DKNG]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, DraftKings Inc. posted -0.24/share EPS, while the average EPS was predicted by analysts to be reported at -0.16/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -50.00%. 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 30.30%.
An analysis of insider ownership at DraftKings Inc. [DKNG]
There are presently around $14,497 million, or 51.00% of DKNG stock, in the hands of institutional investors. The top three institutional holders of DKNG stocks are: VANGUARD GROUP INC with ownership of 23,505,638, which is approximately 13.244% of the company’s market cap and around 8.20% of the total institutional ownership; PRICE T ROWE ASSOCIATES INC /MD/, holding 19,386,231 shares of the stock with an approximate value of $1.39 billion in DKNG stocks shares; and RAINE CAPITAL LLC, currently with $1.2 billion in DKNG stock with ownership of nearly -22.898% of the company’s market capitalization.
484 institutional holders increased their position in DraftKings Inc. [NASDAQ:DKNG] by around 58,133,793 shares. Additionally, 132 investors decreased positions by around 38,114,068 shares, while 39 investors held positions by with 105,879,207 shares. The mentioned changes placed institutional holdings at 202,127,068 shares, according to the latest SEC report filing. DKNG stock had 262 new institutional investments in for a total of 24,570,105 shares, while 62 institutional investors sold positions of 21,018,965 shares during the same period.