The stock of DraftKings Inc (NASDAQ: DKNG) has decreased by -1.06 when compared to last closing price of 43.55.Despite this, the company has seen a gain of 8.16% in its stock price over the last five trading days. zacks.com reported 2024-11-22 that Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock’s price, do they really matter?
Is It Worth Investing in DraftKings Inc (NASDAQ: DKNG) Right Now?
The 36-month beta value for DKNG is at 1.86. Analysts have varying views on the stock, with 22 analysts rating it as a “buy,” 9 rating it as “overweight,” 7 as “hold,” and 0 as “sell.”
The public float for DKNG is 469.54M, and currently, shorts hold a 5.20% of that float. The average trading volume for DKNG on November 25, 2024 was 8.85M shares.
DKNG’s Market Performance
The stock of DraftKings Inc (DKNG) has seen a 8.16% increase in the past week, with a 17.16% rise in the past month, and a 22.80% gain in the past quarter. The volatility ratio for the week is 3.63%, and the volatility levels for the past 30 days are at 3.69% for DKNG. The simple moving average for the past 20 days is 8.47% for DKNG’s stock, with a 8.87% simple moving average for the past 200 days.
Analysts’ Opinion of DKNG
Many brokerage firms have already submitted their reports for DKNG stocks, with Mizuho repeating the rating for DKNG by listing it as a “Outperform.” The predicted price for DKNG in the upcoming period, according to Mizuho is $62 based on the research report published on October 18, 2024 of the current year 2024.
Susquehanna, on the other hand, stated in their research note that they expect to see DKNG reach a price target of $50, previously predicting the price at $48. The rating they have provided for DKNG stocks is “Positive” according to the report published on October 07th, 2024.
Exane BNP Paribas gave a rating of “Neutral” to DKNG, setting the target price at $35 in the report published on September 10th of the current year.
DKNG Trading at 10.71% from the 50-Day Moving Average
After a stumble in the market that brought DKNG to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -13.07% of loss for the given period.
Volatility was left at 3.69%, however, over the last 30 days, the volatility rate increased by 3.63%, as shares surge +18.15% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +13.99% upper at present.
During the last 5 trading sessions, DKNG rose by +8.16%, which changed the moving average for the period of 200-days by +0.65% in comparison to the 20-day moving average, which settled at $39.72. In addition, DraftKings Inc saw 22.24% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at DKNG starting from Robins Jason, who sale 3,151 shares at the price of $43.71 back on Nov 21 ’24. After this action, Robins Jason now owns 0 shares of DraftKings Inc, valued at $137,730 using the latest closing price.
Jason Robins – Robins Family L, the Officer of DraftKings Inc, proposed sale 3,151 shares at $43.71 during a trade that took place back on Nov 21 ’24, which means that Jason Robins – Robins Family L is holding shares at $137,735 based on the most recent closing price.
Stock Fundamentals for DKNG
Current profitability levels for the company are sitting at:
- -0.11 for the present operating margin
- 0.38 for the gross margin
The net margin for DraftKings Inc stands at -0.09. The total capital return value is set at -0.19. Equity return is now at value -44.43, with -10.25 for asset returns.
Based on DraftKings Inc (DKNG), the company’s capital structure generated 0.56 points at debt to capital in total, while cash flow to debt ratio is standing at 0.12. The debt to equity ratio resting at 1.25. The interest coverage ratio of the stock is -168.95.
Currently, EBITDA for the company is -586.65 million with net debt to EBITDA at -1.47. When we switch over and look at the enterprise to sales, we see a ratio of 4.66. The receivables turnover for the company is 71.57for trailing twelve months and the total asset turnover is 1.08. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.00.
Conclusion
In conclusion, DraftKings Inc (DKNG) has had a better performance lately. Opinion on the stock among analysts is mixed, with some giving it a “buy” rating and others a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
