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

DraftKings (NASDAQ:DKNG) had its price objective dropped by research analysts at Barclays from $54.00 to $40.00 in a research report issued to clients and investors on Monday,Benzinga reports. The brokerage currently has an “overweight” rating on the stock. Barclays‘s price target indicates a potential upside of 29.43% from the company’s previous close.

Other equities analysts have also recently issued research reports about the stock. Susquehanna decreased their target price on shares of DraftKings from $59.00 to $48.00 and set a “positive” rating on the stock in a research report on Monday. Bank of America cut DraftKings from a “buy” rating to a “neutral” rating and dropped their target price for the company from $48.00 to $35.00 in a report on Tuesday, November 4th. Zacks Research lowered DraftKings from a “hold” rating to a “strong sell” rating in a research note on Thursday. Jefferies Financial Group set a $52.00 target price on shares of DraftKings in a research note on Monday, October 6th. Finally, JMP Securities cut their price target on shares of DraftKings from $54.00 to $51.00 and set a “market outperform” rating on the stock in a report on Wednesday, October 1st. Twenty-six analysts have rated the stock with a Buy rating, three have given a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, DraftKings currently has a consensus rating of “Moderate Buy” and a consensus target price of $48.93.

DraftKings Stock Up 1.7%

NASDAQ DKNG traded up $0.51 during mid-day trading on Monday, hitting $30.91. The company’s stock had a trading volume of 16,649,546 shares, compared to its average volume of 11,699,496. The firm has a market capitalization of $15.34 billion, a price-to-earnings ratio of -54.08, a PEG ratio of 1.03 and a beta of 1.86. The company’s 50 day simple moving average is $37.88 and its 200 day simple moving average is $39.48. The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 1.82. DraftKings has a twelve month low of $26.23 and a twelve month high of $53.61.

DraftKings (NASDAQ:DKNG) last issued its quarterly earnings data on Thursday, November 6th. The company reported ($0.26) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.01 by ($0.27). The business had revenue of $1.14 billion for the quarter, compared to analyst estimates of $1.40 billion. DraftKings had a negative net margin of 4.90% and a negative return on equity of 21.47%. The firm’s quarterly revenue was up 4.4% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($0.60) earnings per share. DraftKings has set its FY 2025 guidance at EPS. Analysts anticipate that DraftKings will post 0.64 earnings per share for the current year.

Insider Buying and Selling at DraftKings

In other DraftKings news, insider R Stanton Dodge sold 52,777 shares of the business’s stock in a transaction on Thursday, November 6th. The stock was sold at an average price of $29.00, for a total value of $1,530,533.00. Following the sale, the insider directly owned 500,454 shares of the company’s stock, valued at approximately $14,513,166. The trade was a 9.54% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Matthew Kalish sold 210,000 shares of the firm’s stock in a transaction on Tuesday, August 12th. The shares were sold at an average price of $42.90, for a total value of $9,009,000.00. Following the transaction, the insider owned 4,190,233 shares of the company’s stock, valued at $179,760,995.70. The trade was a 4.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 552,777 shares of company stock valued at $23,337,924 over the last three months. 47.08% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of DKNG. TD Private Client Wealth LLC boosted its position in shares of DraftKings by 54.4% during the second quarter. TD Private Client Wealth LLC now owns 800 shares of the company’s stock worth $34,000 after acquiring an additional 282 shares during the last quarter. Root Financial Partners LLC purchased a new stake in DraftKings in the 3rd quarter worth $33,000. Bank of Jackson Hole Trust bought a new position in shares of DraftKings during the 1st quarter valued at about $31,000. Summit Securities Group LLC grew its position in shares of DraftKings by 349.1% during the first quarter. Summit Securities Group LLC now owns 1,042 shares of the company’s stock valued at $35,000 after purchasing an additional 810 shares in the last quarter. Finally, Atlantic Union Bankshares Corp purchased a new position in shares of DraftKings during the second quarter valued at about $45,000. Hedge funds and other institutional investors own 37.70% of the company’s stock.

About DraftKings

DraftKings Inc operates as a digital sports entertainment and gaming company in the United States and internationally. It provides online sports betting and casino, daily fantasy sports, media, and other consumer products, as well as retails sportsbooks. The company also engages in the design and development of sports betting and casino gaming software for online and retail sportsbooks, and iGaming operators.