Truist Financial Has Lowered Expectations for DraftKings (NASDAQ:DKNG) Stock Price

DraftKings (NASDAQ:DKNG) had its price target dropped by equities research analysts at Truist Financial from $29.00 to $26.00 in a research report issued on Tuesday, Benzinga reports. The firm presently has a “buy” rating on the stock. Truist Financial’s target price suggests a potential upside of 29.39% from the stock’s previous close.

Other research analysts have also recently issued research reports about the company. Wells Fargo & Company upped their target price on DraftKings from $29.00 to $30.00 and gave the company an “overweight” rating in a research note on Monday. BTIG Research decreased their price target on DraftKings from $30.00 to $25.00 and set a “buy” rating for the company in a research note on Thursday, October 1st. UBS Group dropped their price objective on DraftKings from $49.00 to $48.00 and set a “buy” rating for the company in a report on Friday, September 18th. Weiss Ratings downgraded DraftKings from a “sell (d)” rating to a “sell (e+)” rating in a research report on Friday, August 21st. Finally, Wall Street Zen downgraded DraftKings from a “hold” rating to a “sell” rating in a research report on Saturday, August 15th. One equities research analyst has rated the stock with a Strong Buy rating, thirty have given a Buy rating, six have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, DraftKings currently has a consensus rating of “Moderate Buy” and an average target price of $33.48.

DraftKings Trading Up 1.6%

NASDAQ:DKNG traded up $0.33 during mid-day trading on Tuesday, hitting $20.09. 2,634,064 shares of the stock traded hands, compared to its average volume of 13,541,738. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 3.22. DraftKings has a 52 week low of $18.35 and a 52 week high of $36.98. The stock has a market capitalization of $9.98 billion, a price-to-earnings ratio of -52.99, a PEG ratio of 1.91 and a beta of 1.61. The firm’s 50 day moving average is $22.65 and its two-hundred day moving average is $23.97.

DraftKings (NASDAQ:DKNG) last announced its quarterly earnings data on Friday, August 7th. The company reported $0.09 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.02 by $0.07. The business had revenue of $1.44 billion during the quarter, compared to the consensus estimate of $1.51 billion. DraftKings had a negative net margin of 2.68% and a negative return on equity of 11.26%. The firm’s quarterly revenue was down 4.6% compared to the same quarter last year. During the same quarter last year, the firm earned $0.30 earnings per share. On average, equities research analysts predict that DraftKings will post 0.40 earnings per share for the current year.

Insider Buying and Selling

In other news, Director Jocelyn Moore sold 10,759 shares of the firm’s stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $24.05, for a total transaction of $258,753.95. Following the transaction, the director directly owned 1,881 shares of the company’s stock, valued at approximately $45,238.05. This trade represents a 85.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 47.18% of the stock is owned by corporate insiders.

Institutional Trading of DraftKings

Institutional investors and hedge funds have recently modified their holdings of the stock. CoreCap Advisors LLC grew its stake in DraftKings by 336.5% in the second quarter. CoreCap Advisors LLC now owns 1,148 shares of the company’s stock worth $29,000 after purchasing an additional 885 shares in the last quarter. SHP Wealth Management bought a new stake in DraftKings during the 4th quarter valued at $42,000. Basecamp Wealth Advisors LLC raised its position in DraftKings by 3,547.1% during the 1st quarter. Basecamp Wealth Advisors LLC now owns 1,240 shares of the company’s stock valued at $27,000 after purchasing an additional 1,206 shares in the last quarter. Ascentis Independent Advisors bought a new stake in DraftKings during the 1st quarter valued at $27,000. Finally, Root Financial Partners LLC lifted its holdings in shares of DraftKings by 208.0% in the 1st quarter. Root Financial Partners LLC now owns 2,775 shares of the company’s stock worth $60,000 after buying an additional 1,874 shares during the period. Institutional investors own 37.70% of the company’s stock.

About DraftKings

DraftKings Inc is a digital sports entertainment and gaming company that operates online and mobile platforms for sports betting, casino gaming and daily fantasy sports. Its offerings include the DraftKings Sportsbook, DraftKings Casino and daily fantasy contests covering a range of professional and collegiate sports.

The company also provides related entertainment and media content through DraftKings Network, along with free-to-play games, promotions and other interactive products designed to complement its sports and gaming platforms.