DraftKings Inc. (NASDAQ:DKNG) Relative Strength Index (RSI) is 58.11, with weekly volatility at 6.53% and ATR at 2.83. The DKNG stock’s 52-week price range has touched low of $10.06 and a $64.19 high. Intraday shares traded counted 11.9 million, which was 58.03% higher than its 30-day average trading volume of 28.35M. Its shares traded higher over the last trading session, gaining 0.63% on 12/02/20. The shares fell to a low of $48.42 before closing at $51.10. DKNG’s previous close was $50.78 while the outstanding shares total 391.71M.
Investors have identified the Shell Companies company DraftKings Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $19.06 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
DraftKings Inc. (DKNG) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For DKNG, the company has in raw cash 1.4 billion on their books with 0.0 currently as liabilities. How the trend is over time is what investors should be concerned about. In terms of their assets, the company currently has 1485856000 million total, with 512828000 million as their total liabilities.
DKNG were able to record -268.35 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 1.06 billion. In cash movements, the company had a total of -241.29 million as operating cash flow.
Potential earnings growth for DraftKings Inc. (DKNG)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, DraftKings Inc. recorded a total of 132.84 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 49.55% coming in sequential stages and their sales for the third quarter increasing by 46.6%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 96.57 million trying to sell their products during the last quarter, with the result yielding a gross income of 36.27 million. This allows shareholders to hold on to 391.71M with the revenue now reading -0.98 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (-0.63 cents a share).
Is the stock of DKNG attractive?
In related news, Director, MURRAY STEVEN JOSEPH sold 1,545,924 shares of the company’s stock in a transaction that recorded on Oct 09. The sale was performed at an average price of 50.83, for a total value of 78,579,317. As the sale deal closes, the Director, Meckenzie Shalom now sold 6,949,088 shares of the company’s stock, valued at 353,222,143. Also, Director, Nada Hany M sold 946,712 shares of the company’s stock in a deal that was recorded on Oct 09. The shares were price at an average price of 50.83 per share, with a total market value of 48,121,371. Following this completion of acquisition, the Director, Salter John S. now holds 4,972,572 shares of the company’s stock, valued at 252,755,835. In the last 6 months, insiders have changed their ownership in shares of company stock by 9.40%.