Investors In DraftKings Inc. (DKNG) Will Start Making Money Again

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DraftKings Inc. (NASDAQ:DKNG) has seen 25.59 million shares traded in the last trading session. The company, currently valued at $20.63B, closed the last trade at $27.24 per share which meant it gained $1.44 on the day or 5.58% during that session. The DKNG stock price is -173.05% off its 52-week high price of $74.38 and 14.79% above the 52-week low of $23.21. If we look at the company’s 10-day average daily trading volume, we find that it stood at 17.89 million shares traded. The 3-month trading volume is 15.84 million shares.

The consensus among analysts is that DraftKings Inc. (DKNG) is an Overweight stock at the moment, with a recommendation rating of 2.30. 1 analysts rate the stock as a Sell, while 1 rate it as Overweight. 13 out of 32 have rated it as a Hold, with 17 advising it as a Buy. 0 have rated the stock as Underweight. The expected earnings per share for the stock is -$0.77.

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Sporting 5.58% in the green in last session, the stock has traded in the red over the last five days, with the highest price hit on Friday, 01/07/22 when the DKNG stock price touched $27.24 or saw a rise of 4.59%. Year-to-date, DraftKings Inc. shares have moved -0.84%, while the 5-day performance has seen it change -0.84%. Over the past 30 days, the shares of DraftKings Inc. (NASDAQ:DKNG) have changed -18.39%. Short interest in the company has seen 38.41 million shares shorted with days to cover at 2.23.

Wall Street analysts have a consensus price target for the stock at $58.48, which means that the shares’ value could jump 53.42% from current levels. The projected low price target is $23.00 while the price target rests at a high of $105.00. In that case, then, we find that the current price level is -285.46% off the targeted high while a plunge would see the stock lose 15.57% from current levels.

DraftKings Inc. (DKNG) estimates and forecasts

Figures show that DraftKings Inc. shares have underperformed across the wider relevant industry. The company’s shares have lost -44.59% over the past 6 months, with this year growth rate of -34.06%, compared to 14.90% for the industry. Other than that, the company has, however, lowered its growth outlook for the 2022 fiscal year revenue. Growth estimates for the current quarter are -13.20% and 34.50% for the next quarter. Revenue growth from the last financial year stood is estimated to be 105.70%.

25 analysts offering their estimates for the company have set an average revenue estimate of $442.45 million for the current quarter. 13 have an estimated revenue figure of $439.82 million for the next quarter concluding in Mar 2022. Year-ago sales stood $322.22 million and $312.28 million respectively for this quarter and the next, and analysts expect sales will grow by 37.30% for the current quarter and 40.80% for the next.

Earnings growth for 2022 is a modest -668.20% while over the next 5 years, the company’s earnings are expected to decrease by -6.80%.

DKNG Dividends

DraftKings Inc. is expected to release its next earnings report between February 24 and February 28 this year, and investors are excited at the prospect of better dividends despite the company’s debt issue.

DraftKings Inc. (NASDAQ:DKNG)’s Major holders

Insiders own 7.46% of the company shares, while shares held by institutions stand at 62.65% with a share float percentage of 67.70%. Investors are also buoyed by the number of investors in a company, with DraftKings Inc. having a total of 889 institutions that hold shares in the company. The top two institutional holders are Vanguard Group, Inc. (The) with over 24.72 million shares worth more than $1.19 billion. As of Sep 29, 2021, Vanguard Group, Inc. (The) held 6.08% of shares outstanding.

The other major institutional holder is Price (T.Rowe) Associates Inc, with the holding of over 19.75 million shares as of Sep 29, 2021. The firm’s total holdings are worth over $951.23 million and represent 4.86% of shares outstanding.

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Also the top two Mutual Funds that are holding company’s shares are ARK ETF Tr-ARK Innovation ETF and Vanguard Total Stock Market Index Fund. As of Oct 30, 2021, the former fund manager holds about 2.67% shares in the company for having 10.86 million shares of worth $506.1 million while later fund manager owns 7.96 million shares of worth $383.58 million as of Sep 29, 2021, which makes it owner of about 1.96% of company’s outstanding stock.