Sports betting company DraftKings got price target hikes from analysts following Friday’s fourth quarter results.
The company’s fourth-quarter revenue doubled from the year-ago quarter. It boosted its revenue estimates for 2021 to between $900 million and $1 billion, up from its previous view between $750 million and $850 million.
Goldman Sachs analyst Stephen Grambling increased his price target to $73 a share from $71. "Management highlighted stronger handle in iGaming and sports betting during the Super Bowl in [Michigan/Virginia] than in existing states during their go live years, the addition of apps to Google Play (Android users represent about 40% of smartphone users per StatCounter), and 50% cross-sell into iGaming (vs. previously about 30%) all driving this momentum, which we anticipate will be supplemented by a normalizing sports calendar," Grambling said. The analyst raised his revenue expectation to $1.01 billion in 2021 from his previous view of $885 million.
Loop Capital maintained their buy rating, while raising their price target to $105 a share from $100. It boosted revenue guidance to $1.11 billion. Loop analyst Daniel Adam said, “The bears have long argued that online gaming and sports betting was essentially a 'race to zero,' implying that operators like DKNG need to spend aggressively on promos to attract users and generate revenue".
Adam added, "We completely disagree with the bear argument. In our view, the fact that DKNG was profitable in [New Jersey] last year, particularly given the impact of COVID in first-half 2020 as there were no traditional sports for a few months in [the first and second quarters] completely undermines the bear thesis."
The 10-day moving average for DKNG crossed bearishly below the 50-day moving average on April 22, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
The 10-day RSI Indicator for DKNG moved out of overbought territory on March 27, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 46 similar instances where the indicator moved out of overbought territory. In of the 46 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on April 17, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on DKNG as a result. In of 79 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for DKNG turned negative on April 02, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at .
DKNG moved below its 50-day moving average on April 17, 2024 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DKNG declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 6 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DKNG advanced for three days, in of 277 cases, the price rose further within the following month. The odds of a continued upward trend are .
DKNG may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 290 cases where DKNG Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. DKNG’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (25.445) is normal, around the industry mean (11.865). P/E Ratio (0.000) is within average values for comparable stocks, (62.563). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (1.549). Dividend Yield (0.000) settles around the average of (0.043) among similar stocks. P/S Ratio (5.672) is also within normal values, averaging (5.559).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. DKNG’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 84, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a digital sports entertainment and gaming company, which provides online and retail sports wagering offerings, online daily fantasy contests and online casino games
Industry CasinosGaming