DraftKings (NASDAQ:DKNG) Posts Quarterly Earnings Results, Misses Estimates By $0.35 EPS

DraftKings (NASDAQ:DKNG) announced its quarterly earnings data on Thursday. The company reported ($0.28) earnings per share for the quarter, missing analysts’ consensus estimates of $0.07 by ($0.35), Zacks reports. DraftKings had a negative net margin of 9.06% and a negative return on equity of 41.23%. DraftKings updated its FY 2025 guidance to EPS.

DraftKings Stock Performance

Shares of NASDAQ DKNG traded up $1.01 during trading hours on Thursday, reaching $46.45. The stock had a trading volume of 21,739,551 shares, compared to its average volume of 8,021,174. The firm has a 50-day moving average of $40.33 and a 200-day moving average of $38.56. The firm has a market cap of $22.65 billion, a price-to-earnings ratio of -52.78, a PEG ratio of 3.18 and a beta of 1.93. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 1.17. DraftKings has a fifty-two week low of $28.69 and a fifty-two week high of $49.57.

Insiders Place Their Bets

In related news, insider Paul Liberman sold 200,000 shares of the stock in a transaction on Friday, January 10th. The shares were sold at an average price of $39.00, for a total transaction of $7,800,000.00. Following the completion of the sale, the insider now owns 1,342,722 shares in the company, valued at $52,366,158. This represents a 12.96 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider R Stanton Dodge sold 228,496 shares of DraftKings stock in a transaction on Monday, December 9th. The shares were sold at an average price of $42.74, for a total transaction of $9,765,919.04. Following the completion of the transaction, the insider now owns 541,884 shares in the company, valued at approximately $23,160,122.16. This represents a 29.66 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 963,742 shares of company stock valued at $38,082,888 over the last quarter. Company insiders own 51.19% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on DKNG shares. Benchmark restated a “buy” rating and issued a $44.00 price target on shares of DraftKings in a research note on Tuesday, January 7th. Macquarie boosted their target price on DraftKings from $50.00 to $51.00 and gave the stock an “outperform” rating in a research note on Monday, November 11th. BMO Capital Markets reaffirmed an “outperform” rating and issued a $48.00 price target on shares of DraftKings in a research report on Wednesday, October 16th. Morgan Stanley boosted their price objective on DraftKings from $47.00 to $48.00 and gave the stock an “overweight” rating in a research report on Tuesday, October 22nd. Finally, JPMorgan Chase & Co. upped their target price on shares of DraftKings from $47.00 to $53.00 and gave the stock an “overweight” rating in a research note on Friday, December 13th. Three equities research analysts have rated the stock with a hold rating and twenty-three have issued a buy rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $50.92.

DraftKings Company Profile

DraftKings Inc operates as a digital sports entertainment and gaming company in the United States and internationally. It provides online sports betting and casino, daily fantasy sports, media, and other consumer products, as well as retails sportsbooks. The company also engages in the design and development of sports betting and casino gaming software for online and retail sportsbooks, and iGaming operators.