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DraftKings Inc. (NASDAQ: DKNG) Is A Safe Investment Now, Isn’t It?

DraftKings Inc. (NASDAQ:DKNG) shares, rose in value on Wednesday, 05/24/23, with the stock price down by -0.49% to the previous day’s close as strong demand from buyers drove the stock to $24.15.

Actively observing the price movement in the last trading, the stock closed the session at $24.27, falling within a range of $23.42 and $24.31. The value of beta (5-year monthly) was 1.79. Referring to stock’s 52-week performance, its high was $26.41, and the low was $10.52. On the whole, DKNG has fluctuated by 14.89% over the past month.

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With the market capitalization of DraftKings Inc. currently standing at about $11.09 billion, investors are eagerly awaiting this quarter’s results, scheduled for Feb 16, 2023 – Feb 20, 2023.

Revisions could be a useful indicator to get insight on short-term price movement; so for the company, there were no upward and no downward review(s) in last seven days. We see that DKNG’s technical picture suggests that short-term indicators denote the stock is a 100% Buy on average. However, medium term indicators have put the stock in the category of 100% Buy while long term indicators on average have been pointing out that it is a 100% Buy.

The stock’s technical analysis shows that the PEG ratio is about 0, with the price of DKNG currently trading nearly 4.32% and 17.01% away from the simple moving averages for 20 and 50 days respectively. The Relative Strength Index (RSI, 14) currently indicates a reading of 59.94, while the 7-day volatility ratio is showing 5.17% which for the 30-day chart, stands at 4.62%. Furthermore, DraftKings Inc. (DKNG)’s beta value is 1.77, and its average true range (ATR) is 1.10. The company’s stock has been forecasted to trade at an average price of $27.42 over the course of the next 52 weeks, with a low of $17.00 and a high of $39.00. Based on these price targets, the low is 29.61% off current price, whereas the price has to move -61.49% to reach the yearly target high. Additionally, analysts’ median price of $27.00 is likely to be welcomed by investors because it represents a decrease of -11.8% from the current levels.

Data on historical trading for DraftKings Inc. (NASDAQ:DKNG) indicates that the trading volumes over the past 10 days have averaged 14.25 million and over the past 3 months, they’ve averaged 11.74 million. According to company’s latest data on outstanding shares, there are 455.08 million shares outstanding.

Nearly 2.10% of DraftKings Inc.’s shares belong to company insiders and institutional investors own 58.20% of the company’s shares. The data on short interest also indicates that stock shorts accounted for 30.81 million shares as on Apr 27, 2023, resulting in a short ratio of 2.85. According to the data, the short interest in DraftKings Inc. (DKNG) stood at 6.68% of shares outstanding as of Apr 27, 2023; the number of short shares registered in Mar 30, 2023 reached 30.52 million. The stock has risen by 112.03% since the beginning of the year, thereby showing the potential of a further growth. This could raise investors’ confidence to be optimistic about the DKNG stock heading into the next quarter.

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