For DraftKings Inc. [DKNG], Analyst sees a drop to $50. What next?


DraftKings Inc. [NASDAQ: DKNG] slipped around -2.93 points on Friday, while shares priced at $28.37 at the close of the session, down -9.36%. The company report on December 2, 2021 that Did You Acquire (DKNG) Before December 23, 2019? Should DraftKings Management be Held Accountable for Investors Losses? Contact Johnson Fistel.

Johnson Fistel, LLP is investigating potential claims on behalf of DraftKings Inc. (NASDAQ: DKNG) against certain of its officers and directors.

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A class action lawsuit was recently filed against DraftKings. According to the case, defendants throughout the Class Period made false and misleading statements and failed to disclose that: (1) SBTech (Global) Limited (“SBTech”) had a history of unlawful operations; (2) accordingly, DraftKings’ merger with SBTech exposed the Company to dealings in black-market gaming; (3) the foregoing increased the Company’s regulatory and criminal risks with respect to these transactions; (4) as a result of all the foregoing, the Company’s revenues were derived, in part, from unlawful conduct and thus unsustainable; (5) accordingly, the benefits of the business combination were overstated; and (6) as a result, the Company’s public statements were materially false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.

DraftKings Inc. stock is now -39.07% down from its year-to-date (YTD) trading value. DKNG Stock saw the intraday high of $31.23 and lowest of $27.475 per share. The company’s 52-week high price is 74.38, which means current price is +3.26% above from all time high which was touched on 03/22/21.

Compared to the average trading volume of 14.19M shares, DKNG reached a trading volume of 29863743 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus 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 $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 2.28, with the Price to Sales ratio for DKNG stock in the period of the last 12 months amounting to 21.57. The Price to Book ratio for the last quarter was 5.17, with the Price to Cash per share for the same quarter was set at 3.66.

How has DKNG stock performed recently?

DraftKings Inc. [DKNG] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -21.28. With this latest performance, DKNG shares dropped by -39.43% in over the last four-week period, additionally sinking by -46.98% over the last 6 months – not to mention a drop of -43.33% 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 16.37, with the RSI for the last a single of trading hit 11.69, and the three-weeks RSI is set at 20.85 for DraftKings Inc. [DKNG]. The present Moving Average for the last 50 days of trading for this stock 44.06, while it was recorded at 32.13 for the last single week of trading, and 52.47 for the last 200 days.

DraftKings Inc. [DKNG]: Deeper insight into the 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.

Earnings analysis for DraftKings Inc. [DKNG]

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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Insider trade positions for DraftKings Inc. [DKNG]

There are presently around $7,324 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 $560.35 million in DKNG stocks shares; and ARK INVESTMENT MANAGEMENT LLC, currently with $497.47 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 411 institutional holders increased their position in DraftKings Inc. [NASDAQ:DKNG] by around 35,089,365 shares. Additionally, 272 investors decreased positions by around 29,644,615 shares, while 112 investors held positions by with 193,435,420 shares. The mentioned changes placed institutional holdings at 258,169,400 shares, according to the latest SEC report filing. DKNG stock had 115 new institutional investments in for a total of 4,564,396 shares, while 74 institutional investors sold positions of 3,165,832 shares during the same period.