DraftKings Inc. (DKNG) And Abercrombie & Fitch Co. (ANF) Saying Scary Stuff?

DraftKings Inc. (NASDAQ: DKNG) shares are 230.47% up in the year-to-date (YTD) period and have moved -2.64% or -$0.96 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +233.58% lower. Comparatively, the stock is -21.05% down YTD and -14.32% over the trailing 3-month period. If we look at the shorter duration, its week performance is -1.26% and 5.95% over the month.

Analyst Recommendations

On August 17, 2020, The Benchmark Company recommended the DKNG stock is a Buy, while earlier, Morgan Stanley had Downgrade the stock as a Equal-Weight on August 28, 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”. 9 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $35.36 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $46.45. 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 $35.00. The two limits represent an upside potential of 41.07% or -1.03%.

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.

Abercrombie & Fitch Co. (NYSE:ANF), on the other hand, is trading around $13.01 with a market cap of $793.09M and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $12.67 and spell out a less modest performance – a -2.68% return. Some analysts are even forecasting -$2.01 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Abercrombie & Fitch Co. (ANF) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

ANF’s operating margin was positive on the trailing 12 months basis, remaining steady at 2.20%, while the operating expenses over the recent quarter were at $473.49 million. This represented a 2.45% of the company’s total revenues which amounted $485.36 million. With this in place, we can see that the company’s diluted EPS declined -$3.90 on the year-over-year period, shrinking to -$0.29 as given in the last earnings report.

In terms of the balance sheet & cash flow as of (Oct 2020), the total assets figure advanced to $3.29 billion from $3.55 billion over the previous quarter. The cash flow from operating activities totaled -$90.78 million, significantly lower than the -$71.32 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$137.77 million.

Insider activity

Insiders have transacted a total of 43 times at Abercrombie & Fitch Co. over the last 6 months, with insider purchases undertaken 29 times and accounting for 842,944 shares. Insider sales totaled 299,698 shares over the same period, with these deals completed in 14 transactions. Looking at these numbers, we realize that net purchases over that period are 15.0 shares. Insiders now hold a total of 1.34M shares after the latest sales, with 291.70% net shares purchased.

Major holders

Insiders own 2.00% of the company shares with a share float percentage of 61.11M. Investors are also buoyed by the number of investors in a company, with Abercrombie & Fitch Co. having a total of 275 institutions that hold shares in the company. The top two institutional holders are Blackrock Inc. with over 9.94 million shares worth more than $105.78 million. As of Jun 29, 2020, Blackrock Inc. held 16.14% of shares outstanding.

The other major institutional holder is Vanguard Group, Inc. (The), with the investment firm holding over 6.61 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $70.31 million and represent 10.73% of shares outstanding.