Cowen slashes price target on DraftKings Inc. [DKNG] – find out why.

DraftKings Inc. [NASDAQ: DKNG] surged by $0.42 during the normal trading session on Monday and reaching a high of $58.32 during the day while it closed the day at $57.08. The company report on April 27, 2021 that DraftKings Strikes First Distribution and Content Relationship With Meadowlark Media.

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DraftKings to Retain Full Monetization of Shows With Focus on Multi-Channel Distribution.

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DraftKings Inc. (Nasdaq: DKNG) continued to broaden its sports entertainment footprint by completing a first-of-its-kind content distribution, monetization and sponsorship agreement with Meadowlark Media. As part of the deal, Meadowlark Media and DraftKings will distribute The Dan Le Batard Show with Stugotz and the Le Batard & Friends Network across a wide range of audio, TV, digital and social channels. Additionally, the network of shows will prominently feature DraftKings’ odds, betting trends and general sportsbook and daily fantasy information.

DraftKings Inc. stock has also loss -3.63% of its value over the past 7 days. However, DKNG stock has inclined by 4.47% in the 3 months of the year. Over the past six months meanwhile, it has gained 52.74% and gained 22.59% year-on date.

The market cap for DKNG stock reached $23.02 billion, with 388.58 million shares outstanding and 328.37 million shares in the current float. Compared to the average trading volume of 15.62M shares, DKNG reached a trading volume of 15754381 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say 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 $73.32 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.

Cowen have made an estimate for DraftKings Inc. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on May 03, 2021. While these analysts kept the previous recommendation, Guggenheim raised their target price to Buy. The new note on the price target was released on April 30, 2021, representing the official price target for DraftKings Inc. stock. Previously, the target price had yet another raise to $81, while Needham analysts kept a Buy rating on DKNG stock. On March 23, 2021, analysts increased their price target for DKNG shares from 79 to 87.

The Average True Range (ATR) for DraftKings Inc. is set at 2.89, with the Price to Sales ratio for DKNG stock in the period of the last 12 months amounting to 37.46. The Price to Book ratio for the last quarter was 8.22, with the Price to Cash per share for the same quarter was set at 5.22.

DKNG stock trade performance evaluation

DraftKings Inc. [DKNG] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -3.63. With this latest performance, DKNG shares dropped by -9.22% in over the last four-week period, additionally plugging by 52.74% over the last 6 months – not to mention a rise of 183.70% 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 42.91, with the RSI for the last a single of trading hit 41.44, and the three-weeks RSI is set at 44.76 for DraftKings Inc. [DKNG]. The present Moving Average for the last 50 days of trading for this stock 62.51, while it was recorded at 58.00 for the last single week of trading, and 50.73 for the last 200 days.

DraftKings Inc. [DKNG]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and DraftKings Inc. [DKNG] shares currently have an operating margin of -132.19 and a Gross Margin at +43.60. DraftKings Inc.’s Net Margin is presently recorded at -137.38.

Return on Total Capital for DKNG is now -51.29, given the latest momentum, and Return on Invested Capital for the company is -53.52. Return on Equity for this stock declined to -54.71, with Return on Assets sitting at -43.93. When it comes to the capital structure of this company, DraftKings Inc. [DKNG] has a Total Debt to Total Equity ratio set at 3.03. Additionally, DKNG Total Debt to Total Capital is recorded at 2.94, with Total Debt to Total Assets ending up at 2.37. Long-Term Debt to Equity for the company is recorded at 2.55, with the Long-Term Debt to Total Capital now at 2.48.

Reflecting on the efficiency of the workforce at the company, DraftKings Inc. [DKNG] managed to generate an average of -$324,719 per employee. Receivables Turnover for the company is 16.44 with a Total Asset Turnover recorded at a value of 0.32.DraftKings Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 4.00 and a Current Ratio set at 4.00.

Earnings per share (EPS) analysis for DraftKings Inc. [DKNG] stock

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%.

DraftKings Inc. [DKNG]: Insider Ownership positions

There are presently around $11,978 million, or 53.40% 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 $1.1 billion in DKNG stocks shares; and RAINE CAPITAL LLC, currently with $948.67 million in DKNG stock with ownership of nearly -22.898% of the company’s market capitalization.

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Positions in DraftKings Inc. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 487 institutional holders increased their position in DraftKings Inc. [NASDAQ:DKNG] by around 64,116,460 shares. Additionally, 160 investors decreased positions by around 38,355,354 shares, while 48 investors held positions by with 108,929,699 shares. The mentioned changes placed institutional holdings at 211,401,513 shares, according to the latest SEC report filing. DKNG stock had 256 new institutional investments in for a total of 27,248,494 shares, while 60 institutional investors sold positions of 21,133,449 shares during the same period.

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