Sanford C. Bernstein Issues Pessimistic Forecast for DraftKings (NASDAQ:DKNG) Stock Price

DraftKings (NASDAQ:DKNG) had its price objective dropped by research analysts at Sanford C. Bernstein from $50.00 to $41.00 in a report issued on Monday,Benzinga reports. The brokerage currently has an “outperform” rating on the stock. Sanford C. Bernstein’s price target suggests a potential upside of 34.87% from the stock’s previous close.

Other analysts also recently issued research reports about the company. Northland Securities set a $30.00 price target on DraftKings in a research note on Monday, October 13th. Citigroup reiterated a “neutral” rating on shares of DraftKings in a research note on Wednesday, October 1st. Northland Capmk cut shares of DraftKings from a “strong-buy” rating to a “strong sell” rating in a research report on Wednesday, October 1st. BMO Capital Markets decreased their target price on DraftKings from $65.00 to $63.00 and set an “outperform” rating on the stock in a research report on Tuesday, November 4th. Finally, Benchmark dropped their price objective on shares of DraftKings from $43.00 to $37.00 and set a “buy” rating for the company in a research note on Friday. Twenty-six research analysts have rated the stock with a Buy rating, two have given a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $50.69.

DraftKings Stock Up 8.6%

Shares of DKNG opened at $30.40 on Monday. The firm has a market capitalization of $15.09 billion, a price-to-earnings ratio of -53.33, a PEG ratio of 1.03 and a beta of 1.86. DraftKings has a 52 week low of $26.23 and a 52 week high of $53.61. The company has a debt-to-equity ratio of 1.82, a quick ratio of 1.34 and a current ratio of 1.34. The business’s fifty day moving average price is $37.88 and its two-hundred day moving average price is $39.48.

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

Insiders Place Their Bets

In other DraftKings news, Director Jocelyn Moore sold 4,861 shares of the stock in a transaction that occurred on Wednesday, August 13th. The stock was sold at an average price of $43.21, for a total transaction of $210,043.81. Following the transaction, the director directly owned 1,461 shares in the company, valued at approximately $63,129.81. This represents a 76.89% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Alan Wayne Ellingson sold 44,693 shares of the firm’s stock in a transaction dated Tuesday, August 19th. The shares were sold at an average price of $44.90, for a total value of $2,006,715.70. Following the completion of the sale, the chief financial officer owned 128,131 shares of the company’s stock, valued at approximately $5,753,081.90. This represents a 25.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 552,777 shares of company stock valued at $23,337,924 in the last 90 days. Company insiders own 47.08% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Bank of Jackson Hole Trust bought a new position in DraftKings during the first quarter valued at about $31,000. Root Financial Partners LLC bought a new stake in shares of DraftKings during the 3rd quarter valued at $33,000. TD Private Client Wealth LLC lifted its holdings in shares of DraftKings by 54.4% in the second quarter. TD Private Client Wealth LLC now owns 800 shares of the company’s stock worth $34,000 after buying an additional 282 shares in the last quarter. Summit Securities Group LLC grew its position in DraftKings by 349.1% during the first quarter. Summit Securities Group LLC now owns 1,042 shares of the company’s stock worth $35,000 after buying an additional 810 shares in the last quarter. Finally, AlphaQuest LLC purchased a new position in DraftKings in the 3rd quarter worth approximately $41,000. 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.