DraftKings (NASDAQ:DKNG) Shares Gap Up – Still a Buy?

DraftKings Inc. (NASDAQ:DKNG)’s share price gapped up before the market opened on Monday . The stock had previously closed at $23.67, but opened at $25.20. DraftKings shares last traded at $24.9260, with a volume of 3,800,487 shares changing hands.

Key Stories Impacting DraftKings

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: Legislative tailwind: Senators introduced a bill that would ban sports wagering on prediction‑market platforms, which investors view as removing a disruptive competitor and strengthening DraftKings’ regulatory moat — this was the primary catalyst for last session’s rally. Prediction Market Bill Article
• Positive Sentiment: Analyst support: BTIG reaffirmed a “buy” and set a $35 price target, signaling that at least some sell‑side analysts still see meaningful upside from current levels. BTIG Reaffirmation
• Neutral Sentiment: Industry/feature stories: Multiple pieces (Seeking Alpha, Zacks) profile DraftKings’ “super‑app” strategy and prediction‑platform ambitions — useful background on growth potential but not immediate catalysts. Seeking Alpha Super App Zacks Trending Stock
• Neutral Sentiment: Short‑interest notices appear to contain erroneous/zero values across several feeds (reported as 0 shares / 0 days to cover). No reliable evidence of a new, material short squeeze or meaningful short covering pressure based on the provided data.
• Negative Sentiment: Legal risk: The NCAA has sued DraftKings seeking to block use of “March Madness” trademarks, creating a new litigation headline that could produce legal costs, injunction risk or marketing restrictions around a high‑visibility event. That suit is a near‑term negative for sentiment and adds regulatory/legal uncertainty. NCAA Lawsuit

Wall Street Analysts Forecast Growth

Several research firms have commented on DKNG. Morgan Stanley decreased their price objective on shares of DraftKings from $53.00 to $40.00 and set an “overweight” rating on the stock in a report on Tuesday, February 24th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of DraftKings in a report on Wednesday, January 21st. Citizens Jmp reiterated a “market outperform” rating and issued a $38.00 price target on shares of DraftKings in a research note on Tuesday, March 3rd. Needham & Company LLC reissued a “buy” rating and issued a $35.00 price target on shares of DraftKings in a report on Tuesday, March 3rd. Finally, Jefferies Financial Group set a $46.00 price objective on shares of DraftKings in a research report on Tuesday, March 3rd. Twenty-five equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, DraftKings currently has a consensus rating of “Moderate Buy” and a consensus target price of $37.09.

DraftKings Stock Down 2.7%

The stock has a fifty day moving average price of $26.39 and a two-hundred day moving average price of $32.01. The company has a market cap of $11.49 billion, a price-to-earnings ratio of -582.75, a P/E/G ratio of 0.96 and a beta of 1.67. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 2.91.

Insider Buying and Selling at DraftKings

In other DraftKings news, insider Paul Liberman sold 484,417 shares of DraftKings stock in a transaction dated Wednesday, March 11th. The shares were sold at an average price of $25.16, for a total value of $12,187,931.72. Following the completion of the sale, the insider owned 213,597 shares in the company, valued at $5,374,100.52. The trade was a 69.40% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider R Stanton Dodge sold 52,777 shares of the business’s stock in a transaction dated Tuesday, January 20th. The shares were sold at an average price of $32.01, for a total transaction of $1,689,391.77. Following the completion of the sale, the insider directly owned 500,000 shares of the company’s stock, valued at $16,005,000. This represents a 9.55% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 549,495 shares of company stock valued at $14,166,700 in the last quarter. Company insiders own 47.08% of the company’s stock.

Institutional Investors Weigh In On DraftKings

A number of large investors have recently added to or reduced their stakes in DKNG. Dagco Inc. bought a new position in DraftKings during the 4th quarter worth $26,000. Ameriflex Group Inc. lifted its position in shares of DraftKings by 100.0% during the 3rd quarter. Ameriflex Group Inc. now owns 810 shares of the company’s stock valued at $30,000 after acquiring an additional 405 shares during the period. Root Financial Partners LLC acquired a new stake in shares of DraftKings during the 3rd quarter worth $33,000. Asset Dedication LLC bought a new position in shares of DraftKings in the third quarter worth $37,000. Finally, Montag A & Associates Inc. increased its position in shares of DraftKings by 82.5% in the fourth quarter. Montag A & Associates Inc. now owns 1,106 shares of the company’s stock worth $38,000 after purchasing an additional 500 shares during the period. Institutional investors and hedge funds own 37.70% of the company’s stock.

About DraftKings

DraftKings Inc is a leading digital sports entertainment and gaming company specializing in daily fantasy sports, sports betting and iGaming products. The company provides an integrated platform where users can participate in daily fantasy contests, place wagers on professional sports events, and enjoy a range of online casino-style games. DraftKings’ proprietary technology supports real-time odds, live scoring and advanced analytics to enhance the user experience across mobile and desktop applications.

Founded in 2012 by co-founders Jason Robins, Matthew Kalish and Paul Liberman, DraftKings began as a daily fantasy sports provider and rapidly expanded into regulated sports betting following legislative changes in the United States.