DraftKings (NASDAQ:DKNG) Price Target Cut to $27.00 by Analysts at Sanford C. Bernstein

DraftKings (NASDAQ:DKNG) had its price target dropped by Sanford C. Bernstein from $29.00 to $27.00 in a research note issued on Tuesday, Benzinga reports. The firm currently has an “outperform” rating on the stock. Sanford C. Bernstein‘s price target points to a potential upside of 23.71% from the company’s current price.

A number of other brokerages have also weighed in on DKNG. Northland Securities set a $28.00 target price on shares of DraftKings in a research report on Monday, August 10th. Barclays lowered their target price on shares of DraftKings from $35.00 to $34.00 and set an “overweight” rating on the stock in a research note on Monday, August 10th. Moffett Nathanson reissued a “neutral” rating and issued a $22.00 price target on shares of DraftKings in a report on Thursday, October 22nd. Guggenheim cut their price target on shares of DraftKings from $33.00 to $30.00 and set a “buy” rating for the company in a report on Wednesday, October 7th. Finally, Stifel Nicolaus decreased their price target on shares of DraftKings from $36.00 to $32.00 and set a “buy” rating on the stock in a report on Monday, October 26th. One equities research analyst has rated the stock with a Strong Buy rating, thirty have issued a Buy rating, six have given a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, DraftKings currently has a consensus rating of “Moderate Buy” and an average price target of $32.79.

DraftKings Stock Performance

DKNG stock traded up $0.01 during mid-day trading on Tuesday, hitting $21.82. The company had a trading volume of 2,504,949 shares, compared to its average volume of 13,412,539. The firm has a market cap of $10.84 billion, a PE ratio of -57.54, a price-to-earnings-growth ratio of 2.29 and a beta of 1.61. The company has a debt-to-equity ratio of 3.22, a quick ratio of 1.02 and a current ratio of 1.02. DraftKings has a 12 month low of $18.35 and a 12 month high of $36.98. The stock’s fifty day moving average price is $21.78 and its two-hundred day moving average price is $24.30.

DraftKings (NASDAQ:DKNG) last released its earnings results on Friday, August 7th. The company reported $0.09 earnings per share for the quarter, beating analysts’ consensus estimates of $0.02 by $0.07. The firm 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 company’s revenue was down 4.6% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.30 EPS. On average, analysts forecast that DraftKings will post 0.36 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Jocelyn Moore sold 10,759 shares of the stock in a transaction dated Wednesday, August 19th. The stock was 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 in the company, valued at approximately $45,238.05. This represents a 85.12% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 47.18% of the company’s stock.

Institutional Trading of DraftKings

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Janus Henderson Group PLC boosted its holdings in DraftKings by 9.3% in the first quarter. Janus Henderson Group PLC now owns 27,665,699 shares of the company’s stock valued at $588,288,000 after acquiring an additional 2,351,790 shares in the last quarter. Spruce House Investment Management LLC boosted its stake in DraftKings by 129.6% during the first quarter. Spruce House Investment Management LLC now owns 9,650,000 shares of the company’s stock worth $208,633,000 after acquiring an additional 5,446,166 shares in the last quarter. Swiss National Bank lifted its holdings in shares of DraftKings by 7.4% during the first quarter. Swiss National Bank now owns 1,314,864 shares of the company’s stock valued at $28,427,000 after purchasing an additional 90,400 shares during the last quarter. Bank of New York Mellon Corp purchased a new position in shares of DraftKings during the second quarter valued at approximately $24,014,000. Finally, Quantinno Capital Management LP boosted its holdings in DraftKings by 273.9% in the first quarter. Quantinno Capital Management LP now owns 898,241 shares of the company’s stock worth $19,420,000 after acquiring an additional 658,006 shares in the last quarter. Institutional investors own 37.70% of the company’s stock.

More DraftKings News

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: Needham maintained a Buy rating and set a $30 price target, implying substantial upside from recent trading levels. The firm’s view is that DraftKings’ recent selloff has gone too far. Needham’s $30 Target Says DraftKings’ Selloff Went Too Far
• Positive Sentiment: Wall Street’s average brokerage recommendation remains favorable, which could support the stock if upcoming results reinforce expectations for improving profitability and growth. However, the articles caution that analyst ratings can be overly optimistic. Is DraftKings a Buy as Wall Street Analysts Look Optimistic?
• Neutral Sentiment: DraftKings’ third-quarter earnings report is approaching. Investors will focus on revenue, profitability, customer engagement, and other operating metrics rather than relying solely on headline earnings and revenue estimates. DraftKings Q3 Earnings Preview
• Negative Sentiment: Susquehanna’s proprietary modeling indicated that October sports-betting results were unfavorable for bookmakers. A weak hold rate could pressure DraftKings’ near-term revenue and margins, helping explain the recent share-price decline. DraftKings Shares Decline on Unfavorable October Hold
• Negative Sentiment: Although Needham remains bullish, it lowered its price target from $35 to $30. The reduction signals that expectations have moderated despite the continued Buy rating. Needham DraftKings Price Target Update

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.