DKNG Earnings - Recent Selloff By DraftKings Management Might Hint at Upcoming Earnings Miss

DKNG reports earnings before market open on May 7th, 2022 with an estimate of -1.23 EPS. Based on historical trends DKNG has a 10% chance of beating earnings. It's important to note that their last reported earnings was -0.8 EPS and the estimated earnings was -0.81 for this time period, a narrow beat. This means that the estimated EPS has been lowered by 51% This should be viewed with the associated guidance set out by the company and what analysts think about the potential for DKNG to beat earnings. Current DKNG Analyst Ratings Here is the current analyst rating distribution for DKNG. In total there are 27 DKNG analyst ratings. 15 Buys 10 Holds 2 Sells UBS maintains DKNG to hold UBS just released their rating for DKNG. As of Mar 16th, 2022 UBS rates DKNG as a hold, compared to their previous rating of hold for DKNG. To give you some perspective, UBS covers 781 companies. We can take a look at the overall rating distribution across these companies. Here is the rating breakdown for the 781 companies it currently covers: 369 Buys 346 Holds 66 Sells Analyst Ratings have provided relatively strong indicators of future price movement, which is why they are used to determine a DKNG stock forecast. However, this shouldn't be the only factor when determining whether to invest in DraftKings Inc., I would use Analyst Ratings as a datapoint along with other fundamental indicators and investment metrics. Insider Trade Alert - DKNG SEC Form 4 Filing The management team disposed of a quite a few shares over the last few days. Liberman Paul, who is a director, officer: President, Global Technology and Product of DKNG disposed of D 6,239 shares. The actual transaction date was Apr 22nd, 2022 and the Form 4 was filed with the SEC on Apr 26th, 2022. Dodge R Stanton, who is a officer: Chief Legal Officer of DKNG disposed D 602 shares . The actual transaction date was Apr 22nd, 2022 and the Form 4 was filed with the SEC on Apr 26th, 2022. Kalish Matthew, who is a director, officer: President - DraftKings, North America of DKNG disposed of D 6,239 shares . The actual transaction date was Apr 22nd, 2022 and the Form 4 was filed with the SEC on Apr 26th, 2022. Park Jason, who is a officer: Chief Financial Officer of DKNG disposed of D 4,635 shares. The actual transaction date was Apr 22nd, 2022 and the Form 4 was filed with the SEC on Apr 26th, 2022. Robins Jason, who is a director, officer: Chief Executive Officer and Chairman of the Board. In addition, Jason Robins is the sole holder of 393,013,951 shares of Class B Common Stock of the Issuer, which are not registered securities. of DKNG disposed D 11,587 shares. The actual transaction date was Apr 22nd, 2022 and the Form 4 was filed with the SEC on Apr 26th, 2022. If you're not familiar with SEC Form 4 filings, Form 4 is required to be filed by a company or the individual at the company when there is a change in the holdings of company insiders. Form 4 must be filed with the SEC within two days of the transaction. The buying or selling of the shares is often referred to as insider buying or selling. The reason this is a big deal is insiders have a real understanding of the internal goings-on inside the company, and they may have information that would allow them to take advantage of that information for their own profit. DKNG Insider Selling Insights Let's take a close look at this recent filing to see if there are any useful insights. Fundamentals of Tracking Insider Buying: Size of Trade - the size of the trade is important. The dollar value of a buyer can be very significant. If Bill Gates buys a few shares not that big of a deal, but if the regional vice president spends a year's salary on purchasing shares pay attention! Type of Trade - the type of transaction is important; buying is far more significant than selling shares. The sales of shares indicate a cash flow issue for the seller; they need cash for a large transaction, and liquidating their shares is easier than taking out a loan. Number of Insiders - pay attention to the number of insiders that are buying or selling; the best scenario is finding a situation that includes two or more insiders buying shares in a compressed period. Price of Trade - the price being paid for the transaction is important, as you would expect that insiders would buy when the price was low and sell when the price was high. Pay attention to when the transactions occurred and at what price it was sold; if the price is significantly different from the current price, then wait for more insider buying to confirm the behavior. DKNG has a 52 week high of $64.58 and a 52 week low of $13.51 which means that the D is taking place near the 52 low at 13.51 per share Timing of Trade - Insiders tend to be early in their transactions, especially when it comes to buying shares. Looking at the timing of insider trading at DKNG and the recent price of the trade, we can assume that insiders see this as an opportunity to cash out near the 52-week low, assuming they think the stock will drop further. DKNG Retail Investor Sentiment Taking a look at Twitter and Stocktwits we can get a sense of the market sentiment for DKNG. Right now the market sentiment for DKNG is -1.42% on Twitter and -0.21% on Stocktwits. Overall this is a generally positive sentiment going into earnings. DKNG is currently averaging about 505 posts per day I'll touch on why this is important, but for now, here is a breakdown for the last 72hrs: 59 somewhat large Twitter accounts 10,000+ followers, 6 large Twitter accounts with 100k+ followers 2 very large accounts with 500k+ followers.

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DKNG Earnings - Recent Selloff By DraftKings Management Might Hint at Upcoming Earnings Miss

Apr 27, 2022

bearish

general Analysis

[4 min Read]

DKNG reports earnings before market open on May 7th, 2022 with an estimate of -1.23 EPS.

Based on historical trends DKNG has a 10% chance of beating earnings. It's important to note that their last reported earnings was -0.8 EPS and the estimated earnings was -0.81 for this time period, a narrow beat. This means that the estimated EPS has been lowered by 51%

This should be viewed with the associated guidance set out by the company and what analysts think about the potential for DKNG to beat earnings.

Current DKNG Analyst Ratings

Here is the current analyst rating distribution for DKNG. In total there are 27 DKNG analyst ratings.

  • 15 Buys
  • 10 Holds
  • 2 Sells

UBS maintains DKNG to hold

UBS just released their rating for DKNG. As of Mar 16th, 2022 UBS rates DKNG as a hold, compared to their previous rating of hold for DKNG. To give you some perspective, UBS covers 781 companies. We can take a look at the overall rating distribution across these companies. Here is the rating breakdown for the 781 companies it currently covers:

  • 369 Buys
  • 346 Holds
  • 66 Sells

Analyst Ratings have provided relatively strong indicators of future price movement, which is why they are used to determine a DKNG stock forecast. However, this shouldn't be the only factor when determining whether to invest in DraftKings Inc., I would use Analyst Ratings as a datapoint along with other fundamental indicators and investment metrics.

Insider Trade Alert - DKNG SEC Form 4 Filing

The management team disposed of a quite a few shares over the last few days.

  • Liberman Paul, who is a director, officer: President, Global Technology and Product of DKNG disposed of D 6,239 shares. The actual transaction date was Apr 22nd, 2022 and the Form 4 was filed with the SEC on Apr 26th, 2022.
  • Dodge R Stanton, who is a officer: Chief Legal Officer of DKNG disposed D 602 shares . The actual transaction date was Apr 22nd, 2022 and the Form 4 was filed with the SEC on Apr 26th, 2022.
  • Kalish Matthew, who is a director, officer: President - DraftKings, North America of DKNG disposed of D 6,239 shares . The actual transaction date was Apr 22nd, 2022 and the Form 4 was filed with the SEC on Apr 26th, 2022.
  • Park Jason, who is a officer: Chief Financial Officer of DKNG disposed of D 4,635 shares. The actual transaction date was Apr 22nd, 2022 and the Form 4 was filed with the SEC on Apr 26th, 2022.
  • Robins Jason, who is a director, officer: Chief Executive Officer and Chairman of the Board. In addition, Jason Robins is the sole holder of 393,013,951 shares of Class B Common Stock of the Issuer, which are not registered securities. of DKNG disposed D 11,587 shares. The actual transaction date was Apr 22nd, 2022 and the Form 4 was filed with the SEC on Apr 26th, 2022.

If you're not familiar with SEC Form 4 filings, Form 4 is required to be filed by a company or the individual at the company when there is a change in the holdings of company insiders. Form 4 must be filed with the SEC within two days of the transaction.

The buying or selling of the shares is often referred to as insider buying or selling. The reason this is a big deal is insiders have a real understanding of the internal goings-on inside the company, and they may have information that would allow them to take advantage of that information for their own profit.

DKNG Insider Selling Insights

Let's take a close look at this recent filing to see if there are any useful insights.

Fundamentals of Tracking Insider Buying:

  • Size of Trade - the size of the trade is important. The dollar value of a buyer can be very significant. If Bill Gates buys a few shares not that big of a deal, but if the regional vice president spends a year's salary on purchasing shares pay attention!
  • Type of Trade - the type of transaction is important; buying is far more significant than selling shares. The sales of shares indicate a cash flow issue for the seller; they need cash for a large transaction, and liquidating their shares is easier than taking out a loan.
  • Number of Insiders - pay attention to the number of insiders that are buying or selling; the best scenario is finding a situation that includes two or more insiders buying shares in a compressed period.
  • Price of Trade - the price being paid for the transaction is important, as you would expect that insiders would buy when the price was low and sell when the price was high. Pay attention to when the transactions occurred and at what price it was sold; if the price is significantly different from the current price, then wait for more insider buying to confirm the behavior.
    • DKNG has a 52 week high of $64.58 and a 52 week low of $13.51 which means that the D is taking place near the 52 low at 13.51 per share
  • Timing of Trade - Insiders tend to be early in their transactions, especially when it comes to buying shares.
    • Looking at the timing of insider trading at DKNG and the recent price of the trade, we can assume that insiders see this as an opportunity to cash out near the 52-week low, assuming they think the stock will drop further.

DKNG Retail Investor Sentiment

Taking a look at Twitter and Stocktwits we can get a sense of the market sentiment for DKNG. Right now the market sentiment for DKNG is -1.42% on Twitter and -0.21% on Stocktwits. Overall this is a generally positive sentiment going into earnings.

DKNG is currently averaging about 505 posts per day I'll touch on why this is important, but for now, here is a breakdown for the last 72hrs: 59 somewhat large Twitter accounts 10,000+ followers, 6 large Twitter accounts with 100k+ followers 2 very large accounts with 500k+ followers.

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DKNG

DraftKings Inc.

11.82

0.05
0.43%

Return

14.78%
Change % Since Posting
2.05
Change Since Posting
13.87
Price When Posted

Metrics

11.10
Target Price
9/ 10
Confidence
1-2 Weeks
Timeframe
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Earnings Release
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News
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SEC
Filing
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Sentiment
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