DraftKings (NASDAQ:DKNG) Price Target Cut to $25.00 by Analysts at TD Cowen

DraftKings (NASDAQ:DKNG) had its price target reduced by analysts at TD Cowen from $35.00 to $25.00 in a report issued on Monday, Benzinga reports. The firm presently has a “buy” rating on the stock. TD Cowen‘s price target would indicate a potential upside of 35.85% from the company’s current price.

Other equities analysts have also recently issued research reports about the company. BTIG Research dropped their target price on DraftKings from $26.00 to $23.00 and set a “buy” rating for the company in a report on Monday. Needham & Company LLC decreased their price target on DraftKings from $30.00 to $25.00 and set a “buy” rating on the stock in a report on Monday. Guggenheim decreased their price target on DraftKings from $33.00 to $30.00 and set a “buy” rating on the stock in a report on Wednesday, October 7th. Mizuho set a $35.00 price target on DraftKings in a research report on Monday. Finally, Morgan Stanley dropped their price objective on shares of DraftKings from $36.00 to $31.00 and set an “overweight” rating for the company in a research note on Monday, October 19th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating, nine have given a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $29.29.

DraftKings Price Performance

Shares of NASDAQ DKNG traded down $0.11 during mid-day trading on Monday, hitting $18.40. 7,039,102 shares of the company’s stock traded hands, compared to its average volume of 13,748,758. The company’s 50-day moving average is $21.51 and its two-hundred day moving average is $24.06. 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 company has a market capitalization of $9.14 billion, a P/E ratio of -23.02, a PEG ratio of 2.43 and a beta of 1.65. DraftKings has a 1 year low of $16.55 and a 1 year high of $36.98.

DraftKings (NASDAQ:DKNG) last released its quarterly earnings results on Thursday, November 5th. The company reported ($0.53) EPS for the quarter, missing the consensus estimate of ($0.41) by ($0.12). DraftKings had a negative return on equity of 36.21% and a negative net margin of 5.91%. The company had revenue of $1.33 billion during the quarter, compared to analysts’ expectations of $1.39 billion. During the same quarter in the prior year, the business posted ($0.26) EPS. The company’s revenue was up 16.2% on a year-over-year basis. On average, equities analysts anticipate that DraftKings will post 0.31 EPS for the current fiscal year.

Insider Buying and Selling at DraftKings

In other news, Director Jocelyn Moore sold 10,759 shares of the stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $24.05, for a total value of $258,753.95. Following the sale, the director directly owned 1,881 shares in the company, valued at approximately $45,238.05. This represents a 85.12% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 47.18% of the company’s stock.

Hedge Funds Weigh In On DraftKings

Several hedge funds have recently bought and sold shares of DKNG. Spruce House Investment Management LLC increased its stake 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 worth $208,633,000 after purchasing an additional 5,446,166 shares during the period. Janus Henderson Group PLC lifted its position in shares of DraftKings by 9.3% during 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 during the last quarter. Bank of New York Mellon Corp purchased a new stake in shares of DraftKings during the second quarter valued at $24,014,000. Renaissance Technologies LLC purchased a new stake in shares of DraftKings during the first quarter valued at $17,660,000. Finally, Quantinno Capital Management LP boosted its stake in shares of 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 purchasing an additional 658,006 shares during the period. Institutional investors own 37.70% of the company’s stock.

More DraftKings News

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: BTIG maintained a Buy rating with a $23 target, while Truist kept Buy and Bernstein kept Outperform, despite each cutting its price target. The revised targets imply potential upside from the approximately $18.50 price cited in the reports. BTIG rating information
• Positive Sentiment: A report highlighted rising hopes for legalized sports betting in Texas, a potential longer-term growth opportunity for DraftKings, while scrutiny of prediction markets could also affect the competitive landscape. Article on Texas betting and prediction markets
• Neutral Sentiment: Sportsbook net revenue grew 36% year over year in Q3, but DraftKings expects to invest $650 million to $700 million in its prediction-market business in 2026, raising questions about the cost and payoff of that expansion. Article on DraftKings long-term takeaways
• Negative Sentiment: DraftKings reported worse-than-expected Q3 results and cut fiscal 2026 guidance. The news drove a reported 21% one-session decline and helped push shares to a 52-week low, reinforcing concerns about costs, business challenges and demand. Article on analyst forecasts after Q3 results
• Negative Sentiment: UBS, JPMorgan and Stifel downgraded the stock; JPMorgan moved from Overweight to Neutral, saying it is increasingly difficult to recommend. Several firms also cut targets—including Truist to $22, Bernstein to $22 and BTIG to $23—adding pressure even though the revised targets remain above the cited share price. Article on analyst downgrades

DraftKings Company Profile

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.