DraftKings (NASDAQ:DKNG) Hits New 52-Week Low After Analyst Downgrade

DraftKings Inc. (NASDAQ:DKNG) hit a new 52-week low on Friday after Citizens Jmp lowered their price target on the stock from $37.00 to $35.00. Citizens Jmp currently has a market outperform rating on the stock. DraftKings traded as low as $20.35 and last traded at $20.9910, with a volume of 2340913 shares traded. The stock had previously closed at $21.27.

Several other research analysts also recently commented on the company. New Street Research set a $29.00 target price on DraftKings in a research note on Monday, June 1st. Benchmark increased their price target on DraftKings from $29.00 to $30.00 and gave the company a “buy” rating in a research note on Friday, August 7th. Stifel Nicolaus cut their price target on DraftKings from $40.00 to $38.00 and set a “buy” rating for the company in a report on Wednesday, July 22nd. Deutsche Bank Aktiengesellschaft lifted their price objective on shares of DraftKings from $26.00 to $28.00 and gave the stock a “hold” rating in a research report on Thursday, July 9th. Finally, JPMorgan Chase & Co. decreased their price objective on shares of DraftKings from $34.00 to $33.00 and set an “overweight” rating on the stock in a report on Monday, August 10th. One investment analyst has rated the stock with a Strong Buy rating, thirty have given a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $34.29.

Insider Transactions at DraftKings

In other DraftKings news, Director Jocelyn Moore sold 10,759 shares of the stock in a transaction on 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 owned 1,881 shares in the company, valued at $45,238.05. This trade represents a 85.12% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 47.18% of the stock is owned by company insiders.

DraftKings News Summary

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: Adjusted sports-volume data from Needham suggests Kalshi’s reported 76% lead in prediction markets may be substantially narrower than headline figures indicate. That could ease concerns about DraftKings losing share in a potentially important growth business. DraftKings Dips as Adjusted Data Narrows Kalshi’s 76% Prediction-Market Lead
• Positive Sentiment: Citizens JMP maintained a “market outperform” rating while lowering its price target from $37 to $35, still implying substantial upside from current levels. The target reduction reflects incremental investment plans rather than a change to the firm’s bullish stance. DraftKings Price Target Lowered to $35 at Citizens
• Neutral Sentiment: Some analysts argue that prediction-market pessimism is excessive, citing strong customer growth, sharply higher market volumes and the potential for higher-margin revenue. However, aggressive customer acquisition and share repurchases could weigh on EBITDA and the balance sheet in the near term. DraftKings Prediction Pessimism Overly Done
• Negative Sentiment: Investors remain concerned that DraftKings’ plans to increase spending on prediction markets will pressure margins before the business produces meaningful profits. Those concerns drove recent selling and overshadowed the company’s longer-term growth opportunity. DraftKings Drops as Prediction-Market Spending Plans Stir Margin Doubts
• Negative Sentiment: Initial data showing Kalshi with a sizable NFL prediction-market advantage triggered fears that DraftKings could be losing an early competitive battle. Although adjusted figures reduce the apparent gap, the issue remains a near-term overhang. DraftKings Falls: Is Kalshi’s NFL Lead Really That Big?

Institutional Investors Weigh In On DraftKings

Several institutional investors have recently made changes to their positions in the stock. Renaissance Technologies LLC purchased a new position in shares of DraftKings during the 1st quarter valued at $17,660,000. Spruce House Investment Management LLC grew its position in shares of DraftKings by 129.6% during the 1st quarter. Spruce House Investment Management LLC now owns 9,650,000 shares of the company’s stock valued at $208,633,000 after purchasing an additional 5,446,166 shares in the last quarter. Janus Henderson Group PLC increased its stake in DraftKings by 9.3% in the 1st quarter. Janus Henderson Group PLC now owns 27,665,699 shares of the company’s stock worth $588,288,000 after acquiring an additional 2,351,790 shares during the last quarter. Aurora Investment Counsel purchased a new stake in DraftKings in the fourth quarter valued at approximately $2,157,000. Finally, Capital World Investors raised its position in shares of DraftKings by 181.4% during the 4th quarter. Capital World Investors now owns 18,626,429 shares of the company’s stock valued at $641,867,000 after buying an additional 12,008,357 shares in the last quarter. 37.70% of the stock is currently owned by institutional investors.

DraftKings Trading Down 0.9%

The stock has a 50 day moving average of $24.01 and a 200 day moving average of $24.47. The company has a debt-to-equity ratio of 3.22, a current ratio of 1.02 and a quick ratio of 1.02. The firm has a market cap of $10.47 billion, a P/E ratio of -55.48, a PEG ratio of 1.78 and a beta of 1.63.

DraftKings (NASDAQ:DKNG) last issued its quarterly earnings results on Friday, August 7th. The company reported $0.09 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.02 by $0.07. The firm had revenue of $1.44 billion during the quarter, compared to analyst estimates of $1.51 billion. DraftKings had a negative return on equity of 11.26% and a negative net margin of 2.68%.The company’s revenue was down 4.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.30 earnings per share. As a group, equities research analysts predict that DraftKings Inc. will post 0.49 EPS for the current year.

About DraftKings

DraftKings Inc is a digital sports entertainment and gaming company that operates online sports betting, iGaming and daily fantasy sports platforms. Its products enable customers to place bets on professional and collegiate sports, play online casino games where permitted, and participate in fantasy contests across a range of sports.

The company also offers related services, including retail sportsbooks in select jurisdictions and sports media content through DraftKings Network. Its offerings are available in U.S.