DraftKings Inc. (NASDAQ:DKNG) Stock Now Rated “Moderate Buy” by Sell-Side Brokerages

DraftKings Inc. (NASDAQ:DKNG) has received a consensus recommendation of “Moderate Buy” from the forty analysts that are currently covering the firm, Marketbeat Ratings reports. Two research analysts have rated the stock with a sell rating, seven have assigned a hold rating, thirty have issued a buy rating and one has assigned a strong buy rating to the company. The average 1-year price objective among analysts that have updated their coverage on the stock in the last year is $33.83.

A number of brokerages recently commented on DKNG. Weiss Ratings cut shares of DraftKings from a “sell (d)” rating to a “sell (e+)” rating in a research report on Friday, August 21st. Citigroup reaffirmed a “market outperform” rating on shares of DraftKings in a research note on Monday, September 28th. TD Cowen lifted their price objective on DraftKings from $30.00 to $35.00 and gave the stock a “buy” rating in a report on Friday, July 10th. Morgan Stanley decreased their price objective on DraftKings from $39.00 to $36.00 and set an “overweight” rating on the stock in a report on Thursday, July 23rd. Finally, UBS Group lowered their target price on DraftKings from $49.00 to $48.00 and set a “buy” rating for the company in a research note on Friday, September 18th.

Insider Buying and Selling

In other DraftKings news, Director Jocelyn Moore sold 10,759 shares of the business’s 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 completion of the sale, the director owned 1,881 shares in the company, valued at approximately $45,238.05. The trade was a 85.12% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through 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.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Renaissance Technologies LLC purchased a new position in shares of DraftKings in the first quarter valued at about $17,660,000. Spruce House Investment Management LLC raised its stake in shares of DraftKings by 129.6% during the first quarter. Spruce House Investment Management LLC now owns 9,650,000 shares of the company’s stock valued at $208,633,000 after acquiring an additional 5,446,166 shares during the last quarter. Janus Henderson Group PLC boosted its holdings 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 period. Aurora Investment Counsel purchased a new stake in shares of DraftKings during the fourth quarter worth about $2,157,000. Finally, Capital World Investors grew its stake in shares of DraftKings by 181.4% in the fourth quarter. Capital World Investors now owns 18,626,429 shares of the company’s stock worth $641,867,000 after purchasing an additional 12,008,357 shares during the last quarter. Institutional investors own 37.70% of the company’s stock.

DraftKings Stock Up 3.8%

Shares of DKNG opened at $19.87 on Friday. DraftKings has a 1 year low of $18.52 and a 1 year high of $36.98. 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 stock has a 50 day simple moving average of $23.19 and a two-hundred day simple moving average of $24.09. The firm has a market cap of $9.86 billion, a P/E ratio of -52.29, a P/E/G ratio of 1.93 and a beta of 1.61.

DraftKings (NASDAQ:DKNG) last posted its quarterly earnings results on Friday, August 7th. The company reported $0.09 EPS for the quarter, topping the consensus estimate of $0.02 by $0.07. DraftKings had a negative net margin of 2.68% and a negative return on equity of 11.26%. The firm had revenue of $1.44 billion for the quarter, compared to the consensus estimate of $1.51 billion. During the same period last year, the firm posted $0.30 earnings per share. The business’s revenue was down 4.6% compared to the same quarter last year. On average, analysts forecast that DraftKings will post 0.4 earnings per share for the current fiscal year.

Key Stories Impacting DraftKings

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: Bank of America turned bullish on DraftKings after staying on the sidelines for about a year, citing potentially stabilizing Wall Street estimates and an improved risk-reward profile. DraftKings Is Down 19% in a Month: Did Bank of America Just Call the Bottom?
• Positive Sentiment: DraftKings’ iGaming operation is showing possible recovery signs, including more stable market share, improving customer acquisition and traction from new products. A sustained turnaround could support revenue growth and investor sentiment. DraftKings Stock Surges After Bank of America Upgrades Stock to Buy
• Positive Sentiment: The company launched DKeX, a CFTC-regulated prediction-market exchange, with management targeting as much as $800 million in revenue by 2027. The initiative offers a potential new growth avenue beyond traditional sports betting. DraftKings Stacks the Deck: The $800M Prediction Pivot
• Neutral Sentiment: DraftKings is scheduled to report third-quarter results in early November, giving investors a near-term test of sportsbook trends, customer acquisition costs and whether the anticipated earnings-estimate bottom has formed. Wall Street Is Betting These 3 Beaten-Down Stocks Have More Room to Run
• Negative Sentiment: DraftKings recently underperformed the broader market, reflecting investor concerns about declining sportsbook revenue and increasing competition from prediction-market platforms. Those risks remain despite the analyst upgrade. Why Is DraftKings Stock Crashing, and Is It a Buying Opportunity?

DraftKings Company Profile

DraftKings Inc is a digital sports entertainment and gaming company that provides online sports betting, daily fantasy sports and internet-based casino gaming. Its products are delivered through mobile applications and websites, allowing customers to wager on professional and collegiate sports, participate in fantasy contests and play a range of casino games where permitted by law.

The company also offers sports and betting-related content through DraftKings Network and operates additional gaming and entertainment products, including online lottery services in select markets.