Paul Liberman, the President of Global Technology and Product at DraftKings Inc. (NASDAQ:DKNG), recently sold 200,000 shares of Class A Common Stock, according to a filing with the Securities and Exchange Commission. The shares were sold at a price of $39 each, generating a total of $7.8 million. The transaction comes as DraftKings, now valued at $19.3 billion, has seen its stock trade near its 52-week high of $49.57, with InvestingPro data showing strong revenue growth of 40% over the last twelve months. The transaction was conducted under a pre-arranged trading plan established on March 5, 2024, following Rule 10b5-1 guidelines. Following the sale, Liberman holds a significant number of shares across various trusts, including the Paul Liberman 2015 Revocable Trust and the Paul Liberman 2020 Trust. While InvestingPro analysis indicates the stock is currently fairly valued, analysts are optimistic about the company's prospects, with forecasts pointing to profitability in the current year. Get access to 10+ additional exclusive ProTips and comprehensive analysis through the Pro Research Report.
In other recent news, DraftKings Inc. has been the subject of multiple analyst reports. Susquehanna lowered their Q4 revenue estimate for the company to $1.4 billion, with an EBITDA of $81 million, despite maintaining a positive rating. Similarly, Benchmark also maintained a buy rating on DraftKings shares, adjusting their revenue estimate downward by approximately $136 million. Meanwhile, JPMorgan (NYSE:JPM) raised its price target for DraftKings to $53.00, citing strong revenue growth prospects, and Goldman Sachs (NYSE:GS) maintained its buy rating and $57.00 price target, emphasizing the company's growth potential.
Flutter Entertainment, another major player in the online sports betting and iGaming industry, reported a period of unfavorable U.S. sports results, which led to an estimated adverse gross gaming revenue impact of $438 million. Despite this, the company remains confident in its long-term growth trajectory.
These are recent developments and it's important to note that despite the adjustments in Q4 estimates, analysts are optimistic about DraftKings' growth prospects. The company's future outlook includes generating approximately $850 million in free cash flow in fiscal year 2025, with revenue guidance set between $6.2 billion and $6.6 billion, and adjusted EBITDA guidance ranging from $900 million to $1 billion. DraftKings is also expected to launch in Missouri in September 2025, a development that analysts believe will significantly boost the company's revenue and EBITDA.
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