JPMorgan Chase & Co. Cuts DraftKings (NASDAQ:DKNG) Price Target to $42.00

DraftKings (NASDAQ:DKNG) had its price objective dropped by research analysts at JPMorgan Chase & Co. from $51.00 to $42.00 in a research note issued to investors on Monday,Benzinga reports. The brokerage presently has an “overweight” rating on the stock. JPMorgan Chase & Co.‘s price target would suggest a potential upside of 34.50% from the company’s current price.

A number of other research analysts have also issued reports on the stock. Barclays restated an “overweight” rating and set a $54.00 target price (up previously from $51.00) on shares of DraftKings in a research report on Friday, August 8th. Zacks Research cut DraftKings from a “hold” rating to a “strong sell” rating in a research note on Thursday. Deutsche Bank Aktiengesellschaft set a $47.00 price objective on DraftKings and gave the stock a “hold” rating in a research note on Friday, August 8th. Mizuho dropped their price objective on DraftKings from $58.00 to $54.00 and set an “outperform” rating for the company in a report on Tuesday, October 7th. Finally, Northland Capmk lowered DraftKings from a “strong-buy” rating to a “strong sell” rating in a report on Wednesday, October 1st. Twenty-six equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, DraftKings has an average rating of “Moderate Buy” and an average price target of $49.59.

DraftKings Stock Performance

NASDAQ:DKNG traded up $0.83 during mid-day trading on Monday, hitting $31.23. The stock had a trading volume of 14,308,020 shares, compared to its average volume of 11,686,676. DraftKings has a twelve month low of $26.23 and a twelve month high of $53.61. The stock has a market cap of $15.50 billion, a price-to-earnings ratio of -54.85, 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 debt-to-equity ratio of 1.82, a quick ratio of 1.34 and a current ratio of 1.34.

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

Insider Buying and Selling at DraftKings

In related news, insider Matthew Kalish sold 210,000 shares of the company’s stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $42.90, for a total transaction of $9,009,000.00. Following the sale, the insider owned 4,190,233 shares in the company, valued at $179,760,995.70. This represents a 4.77% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Jocelyn Moore sold 4,861 shares of the firm’s stock in a transaction that occurred on Wednesday, August 13th. The stock was sold at an average price of $43.21, for a total value of $210,043.81. Following the sale, the director directly owned 1,461 shares of the company’s stock, valued at $63,129.81. This represents a 76.89% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 552,777 shares of company stock valued at $23,337,924. 47.08% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On DraftKings

Hedge funds and other institutional investors have recently modified their holdings of the company. Bank of Jackson Hole Trust bought a new stake in DraftKings during the 1st quarter valued at $31,000. Root Financial Partners LLC purchased a new stake in shares of DraftKings in the third quarter valued at about $33,000. TD Private Client Wealth LLC lifted 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 valued at $34,000 after purchasing an additional 282 shares in the last quarter. Summit Securities Group LLC lifted 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, AlphaQuest LLC purchased a new position in DraftKings during the third quarter worth about $41,000. 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.