DraftKings (NASDAQ:DKNG) Stock Gets Price Target Cut from BTIG Research

DraftKings (NASDAQ:DKNG) had its price objective lowered by BTIG Research from $26.00 to $23.00 in a research report sent to investors on Monday morning,Benzinga reports. The firm currently has a buy rating on the stock.

A number of other analysts have also recently commented on the company. Benchmark lifted their price objective on DraftKings from $29.00 to $30.00 and gave the stock a “buy” rating in a research report on Friday, August 7th. Susquehanna reduced their target price on shares of DraftKings from $33.00 to $27.00 and set a “positive” rating on the stock in a report on Thursday, October 8th. Weiss Ratings lowered shares of DraftKings from a “sell (d)” rating to a “sell (e+)” rating in a report on Friday, August 21st. Guggenheim decreased their price target on shares of DraftKings from $33.00 to $30.00 and set a “buy” rating on the stock in a research note on Wednesday, October 7th. Finally, Zacks Research cut shares of DraftKings from a “hold” rating to a “strong sell” rating in a research note on Tuesday, October 13th. One analyst has rated the stock with a Strong Buy rating, twenty-five have issued a Buy rating, ten have issued a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat.com, DraftKings presently has an average rating of “Moderate Buy” and an average target price of $27.61.

DraftKings Price Performance

DraftKings stock opened at $19.64 on Monday. DraftKings has a 12 month low of $16.55 and a 12 month high of $36.98. The company has a debt-to-equity ratio of 12.21, a current ratio of 0.99 and a quick ratio of 1.02. The business has a 50 day simple moving average of $21.20 and a 200-day simple moving average of $23.88. The stock has a market capitalization of $9.79 billion, a PE ratio of -24.55, a price-to-earnings-growth ratio of 2.54 and a beta of 1.65.

DraftKings (NASDAQ:DKNG) last released its earnings results on Thursday, November 5th. The company reported ($0.53) EPS for the quarter, missing analysts’ consensus estimates of ($0.41) by ($0.12). DraftKings had a negative net margin of 5.91% and a negative return on equity of 43.92%. The business had revenue of $1.33 billion during the quarter, compared to analyst estimates of $1.39 billion. During the same period last year, the business posted ($0.26) EPS. DraftKings’s revenue was up 16.2% compared to the same quarter last year. Equities analysts predict that DraftKings will post 0.31 earnings per share for the current year.

Insider Buying and Selling at DraftKings

In other news, CFO Alan Ellingson bought 18,908 shares of DraftKings stock in a transaction dated Monday, November 9th. The shares were acquired at an average cost of $18.51 per share, with a total value of $349,987.08. Following the completion of the transaction, the chief financial officer owned 214,692 shares in the company, valued at approximately $3,973,948.92. This trade represents a 9.66% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Jocelyn Moore sold 10,759 shares of the company’s stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $24.05, for a total transaction of $258,753.95. Following the completion of the transaction, the director directly owned 1,881 shares of the company’s stock, valued at approximately $45,238.05. The trade was a 85.12% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 47.18% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Janus Henderson Group PLC grew its stake in DraftKings by 9.3% in the first quarter. Janus Henderson Group PLC now owns 27,665,699 shares of the company’s stock worth $588,288,000 after purchasing an additional 2,351,790 shares in the last quarter. Spruce House Investment Management LLC increased its holdings in DraftKings by 129.6% in the first quarter. Spruce House Investment Management LLC now owns 9,650,000 shares of the company’s stock valued at $208,633,000 after buying an additional 5,446,166 shares during the last quarter. Swiss National Bank raised its stake in 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 buying an additional 90,400 shares in the last quarter. Bank of New York Mellon Corp acquired a new stake in DraftKings during the second quarter valued at approximately $24,014,000. Finally, Quantinno Capital Management LP raised its stake in DraftKings by 273.9% during the first quarter. Quantinno Capital Management LP now owns 898,241 shares of the company’s stock valued at $19,420,000 after buying an additional 658,006 shares in the last quarter. 37.70% of the stock is owned by institutional investors and hedge funds.

DraftKings News Summary

These are some of the DKNG news items that stood out recently:

• Negative Sentiment: Several firms cut DraftKings’ ratings or price targets after its latest results and outlook reset. JPMorgan lowered its rating, while Bernstein, Barclays, TD Cowen, Truist, BTIG and Canaccord issued target cuts or more cautious forecasts, signaling diminished confidence in near-term earnings prospects. JPMorgan rating change
• Negative Sentiment: The main concern is the expense and uncertain economics of DraftKings’ Predictions business. An investigation by Levi & Korsinsky questions whether SEC filings adequately disclosed the investment’s costs before the company cited a $650 million to $700 million commitment. The inquiry is an allegation, not a finding of wrongdoing. Levi & Korsinsky investigation notice
• Negative Sentiment: Rosen Law Firm also announced an investigation into potential securities claims, alleging DraftKings may have provided materially misleading business information. The announcement creates a legal overhang but does not establish that the claims have merit. Rosen Law Firm investigation notice

About DraftKings

DraftKings Inc. is a digital sports and entertainment company founded in 2012. It began as a daily fantasy sports platform and has since expanded into online sports betting and gaming. The company offers daily fantasy contests, a sportsbook and online casino products, including games such as slots and table games. Its services are available in a range of U.S. jurisdictions and in Ontario, Canada, where permitted by local regulations. DraftKings is headquartered in Boston, Massachusetts. Co-founder Jason Robins serves as the company’s chief executive officer.