Market cap of DraftKings Inc. [DKNG] reaches 29.26B – now what?

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DraftKings Inc. [NASDAQ: DKNG] stock went on a downward path that fall over -1.31% on Friday, amounting to a one-week price decrease of less than -10.79%. The company report on November 18, 2021 that Boston Bruins Name DraftKings As Official, Exclusive Daily Fantasy Sports Partner.

Official Sports Betting naming rights contingent on sports betting legalization in Massachusetts.


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The Boston Bruins and DraftKings Inc. (Nasdaq: DKNG) announced a new multi-year deal, which will make DraftKings the exclusive, Official Daily Fantasy Sports Partner of the team and TD Garden, and the exclusive presenting sponsor of the Boston Bruins Foundation 50/50 charitable raffle. The parties have also agreed that DraftKings will be an Official Sports Betting Partner of the Boston Bruins and TD Garden, should sports betting become legal in Massachusetts. The new deal marks another strategic agreement with an NHL team for DraftKings, further advancing DraftKings’ relationship with the league as an official daily fantasy partner and an official sports betting partner of the NHL.

Over the last 12 months, DKNG stock dropped by -26.72%. The one-year DraftKings Inc. stock forecast points to a potential upside of 44.14. The average equity rating for DKNG stock is currently 2.00, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $29.26 billion, with 401.45 million shares outstanding and 378.67 million shares in the current float. Compared to the average trading volume of 13.49M shares, DKNG stock reached a trading volume of 14780387 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on 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 $64.70 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 2.00. 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.

Truist have made an estimate for DraftKings Inc. shares, keeping their opinion on the stock as Hold, with their previous recommendation back on November 08, 2021. While these analysts kept the previous recommendation, ROTH Capital dropped their target price from $41 to $39. The new note on the price target was released on November 08, 2021, representing the official price target for DraftKings Inc. stock. Previously, the target price had yet another drop from $80 to $70, while Oppenheimer kept a Outperform rating on DKNG stock. On November 08, 2021, analysts decreased their price target for DKNG shares from 51 to 46.

The Average True Range (ATR) for DraftKings Inc. is set at 2.05, with the Price to Sales ratio for DKNG stock in the period of the last 12 months amounting to 27.48. The Price to Book ratio for the last quarter was 6.58, with the Price to Cash per share for the same quarter was set at 3.66.

DKNG Stock Performance Analysis:

DraftKings Inc. [DKNG] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -10.79. With this latest performance, DKNG shares dropped by -26.12% in over the last four-week period, additionally sinking by -24.49% over the last 6 months – not to mention a drop of -26.72% 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 21.77, with the RSI for the last a single of trading hit 15.55, and the three-weeks RSI is set at 26.61 for DraftKings Inc. [DKNG]. The present Moving Average for the last 50 days of trading for this stock 48.25, while it was recorded at 37.85 for the last single week of trading, and 53.67 for the last 200 days.

Insight into DraftKings Inc. 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 -200.45.

Return on Total Capital for DKNG is now -52.37, given the latest momentum, and Return on Invested Capital for the company is -79.75. Return on Equity for this stock declined to -81.56, with Return on Assets sitting at -64.09. When it comes to the capital structure of this company, DraftKings Inc. [DKNG] has a Total Debt to Total Equity ratio set at 3.10. Additionally, DKNG Total Debt to Total Capital is recorded at 3.01, with Total Debt to Total Assets ending up at 2.37. Long-Term Debt to Equity for the company is recorded at 2.61, with the Long-Term Debt to Total Capital now at 2.54.

Reflecting on the efficiency of the workforce at the company, DraftKings Inc. [DKNG] managed to generate an average of -$473,783 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 4.70 and a Current Ratio set at 4.70.

DKNG Stock EPS

With the latest financial reports released by the company, DraftKings Inc. posted -0.68/share EPS, while the average EPS was predicted by analysts to be reported at -0.47/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -44.70%. 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 -6.80%.

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DraftKings Inc. [DKNG] Insider Position Details

There are presently around $9,331 million, or 61.70% of DKNG stock, in the hands of institutional investors. The top three institutional holders of DKNG stocks are: VANGUARD GROUP INC with ownership of 24,718,581, which is approximately -0.249% of the company’s market cap and around 6.50% of the total institutional ownership; PRICE T ROWE ASSOCIATES INC /MD/, holding 19,751,444 shares of the stock with an approximate value of $713.82 million in DKNG stocks shares; and ARK INVESTMENT MANAGEMENT LLC, currently with $633.72 million in DKNG stock with ownership of nearly 28.667% of the company’s market capitalization.

Positions in DraftKings Inc. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 412 institutional holders increased their position in DraftKings Inc. [NASDAQ:DKNG] by around 35,098,956 shares. Additionally, 271 investors decreased positions by around 29,634,999 shares, while 112 investors held positions by with 193,445,704 shares. The mentioned changes placed institutional holdings at 258,179,659 shares, according to the latest SEC report filing. DKNG stock had 116 new institutional investments in for a total of 4,573,954 shares, while 73 institutional investors sold positions of 3,156,274 shares during the same period.