Checking in With DraftKings Stock After Recent Slide

The stock just slipped below its recent floor at the $48 level

Laura McCandless

Deputy Editor

Oct 25, 2021 at 1:53 PM

DKNG

DraftKings Inc (NASDAQ:DKNG) stock has been consolidating above the $48 level since late September. However, last session's drop sent the stock below that level, as well as all short-term moving averages. In the past six months, DraftKings stock is down 21%. At last check, DKNG was up 1.4% to trade at $46.76.

In the options pits so far today, 99,000 calls and 20,000 puts have crossed the tape. The most popular is the weekly 11/5 50-strike call, followed by the November 55 call, with new positions being opened at the former.

Meanwhile, there is plenty of short-covering potential. Short interest makes up 8.5% of the stock's available float, or nearly three days' worth of pent-up buying power.

The majority of analysts are bullish on DKNG. Of the 17 analysts in coverage, 11 carry a "strong buy" rating, five sport a "hold," and one a "strong sell." Plus, the 12-month consensus price target of $69.80 is a 49.3% premium to current levels

Follow @Schaeffers

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!