Sophisticated Investors Should Avoid: DraftKings Inc. (DKNG), Oasis Petroleum Inc. (OAS)

DraftKings Inc. (NASDAQ: DKNG) shares are 263.18% up in the year-to-date (YTD) period and have moved -0.51% or -$0.2 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +266.60% lower. Comparatively, the stock is -13.24% down YTD and 4.32% over the trailing 3-month period. If we look at the shorter duration, its week performance is 7.14% and 12.21% over the month.

Analyst Recommendations

On July 31, 2020, The Benchmark Company recommended the DKNG stock is a Buy, while earlier, The Benchmark Company had Reiterated the stock as a Buy on August 17, 2020. 12 analysts offering the recommendations for the stock have a consensus rating of 1.90 to suggest that the DKNG stock is a “Strong Buy. 0 of the 12 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 10 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $38.86 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $46.09. The forecasts give the DraftKings Inc. stock a price target range of $60.00 on the higher side while at least one analyst think the stock could plunge to a low of $26.00. The two limits represent an upside potential of 35.23% or -49.46%.

Earnings Forecast

Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.22 and -$0.06. Wall Street estimates earnings per share to be at an average of -$0.67 for the next year.

Insider Transactions Summary

Levin Woodrow, a Director at the company, sold 50,000 shares worth $1.94 million at $38.80 per share on Jun 23. The Director had earlier sold another 3,112 DKNG shares valued at $0.12 million on Jun 23. The shares were sold at $38.80 per share. Liberman Paul sold 796,348 shares at $38.80 per share on Jun 23 for a total of $30.9 million while Dodge R Stanton, (Chief Legal Officer) sold 399,416 shares on Jun 23 for $15.5 million with each share fetching $38.80.

Oasis Petroleum Inc. (NASDAQ:OAS), on the other hand, is trading around $0.62 with a market cap of $214.51M and analyst research firms have a negative stance on its shares.

Let us briefly look at the Oasis Petroleum Inc. (OAS) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

OAS’s operating expenses over the recent quarter were at $44.39 million. This represented a 73.32% of the company’s total revenues which amounted $166.35 million. With this in place, we can see that the company’s diluted EPS declined -$0.28 on the year-over-year period, growing to $0.16 as given in the last earnings report.

In terms of the balance sheet & cash flow as of Name, the total assets figure advanced to $2.63 billion from $2.87 billion over the previous quarter. The cash flow from operating activities totaled $59.9 million, significantly lower than the $388.93 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$210.39 million.

Insider activity

Insiders have transacted a total of 25 times at Oasis Petroleum Inc. over the last 6 months, with insider purchases undertaken 12 times and accounting for 485,667 shares. Insider sales totaled 841,455 shares over the same period, with these deals completed in 13 transactions. Looking at these numbers, we realize that net purchases over that period are -1.0 shares. Insiders now hold a total of Hasbro, Inc. shares after the latest sales, with Oasis Midstream Partners LP net shares purchased.

Major holders

Insiders own 1.50% of the company shares, while shares held by institutions stand at 53.40% with a share float percentage of 295.02M.