Benchmark Issues Pessimistic Forecast for DraftKings (NASDAQ:DKNG) Stock Price

DraftKings (NASDAQ:DKNG) had its target price reduced by stock analysts at Benchmark from $43.00 to $37.00 in a note issued to investors on Friday,Benzinga reports. The brokerage presently has a “buy” rating on the stock. Benchmark’s price target would indicate a potential upside of 24.99% from the stock’s previous close.

A number of other equities research analysts also recently weighed in on DKNG. Morgan Stanley reiterated an “overweight” rating and issued a $52.00 target price (up from $51.00) on shares of DraftKings in a report on Friday, July 11th. Mizuho lowered their price objective on shares of DraftKings from $58.00 to $54.00 and set an “outperform” rating for the company in a research note on Tuesday, October 7th. Susquehanna dropped their target price on shares of DraftKings from $64.00 to $59.00 and set a “positive” rating on the stock in a research report on Tuesday, October 14th. Weiss Ratings restated a “sell (d-)” rating on shares of DraftKings in a report on Wednesday, October 8th. Finally, Bank of America downgraded shares of DraftKings from a “buy” rating to a “neutral” rating and decreased their price target for the company from $48.00 to $35.00 in a research note on Tuesday. Twenty-six research analysts have rated the stock with a Buy rating, two have issued a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $52.03.

DraftKings Price Performance

Shares of NASDAQ DKNG traded up $1.62 during trading hours on Friday, hitting $29.60. 26,285,101 shares of the stock were exchanged, compared to its average volume of 11,597,462. The company’s fifty day simple moving average is $38.23 and its two-hundred day simple moving average is $39.42. DraftKings has a 1-year low of $26.23 and a 1-year high of $53.61. The company has a market cap of $14.70 billion, a PE ratio of -45.60, a price-to-earnings-growth ratio of 0.95 and a beta of 1.86. 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 issued its quarterly earnings data on Thursday, November 6th. The company reported ($0.26) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.01 by ($0.27). DraftKings had a negative return on equity of 30.06% and a negative net margin of 5.63%.The company had revenue of $1.14 billion for the quarter, compared to the consensus estimate of $1.40 billion. During the same quarter last year, the business earned ($0.60) earnings per share. DraftKings’s revenue was up 4.4% compared to the same quarter last year. DraftKings has set its FY 2025 guidance at EPS. On average, sell-side analysts predict that DraftKings will post 0.64 EPS for the current year.

Insider Activity at DraftKings

In other DraftKings news, CFO Alan Wayne Ellingson sold 44,693 shares of the company’s stock in a transaction that occurred on Tuesday, August 19th. The stock was sold at an average price of $44.90, for a total transaction of $2,006,715.70. Following the sale, the chief financial officer directly owned 128,131 shares in the company, valued at $5,753,081.90. This represents a 25.86% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, Director Jocelyn Moore sold 4,861 shares of the business’s stock in a transaction that occurred on Wednesday, August 13th. The shares were sold at an average price of $43.21, for a total value 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. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 500,000 shares of company stock valued at $21,807,391 over the last ninety days. 51.19% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On DraftKings

A number of large investors have recently bought and sold shares of the business. Norges Bank purchased a new stake in shares of DraftKings during the second quarter valued at $362,554,000. AQR Capital Management LLC grew its stake in DraftKings by 2,138.9% in the 1st quarter. AQR Capital Management LLC now owns 4,696,244 shares of the company’s stock worth $155,962,000 after acquiring an additional 4,486,488 shares in the last quarter. Brown Advisory Inc. grew its stake in DraftKings by 53,272.1% in the 2nd quarter. Brown Advisory Inc. now owns 4,056,280 shares of the company’s stock worth $173,974,000 after acquiring an additional 4,048,680 shares in the last quarter. Eminence Capital LP raised its stake in shares of DraftKings by 195.2% during the first quarter. Eminence Capital LP now owns 5,178,083 shares of the company’s stock valued at $171,964,000 after acquiring an additional 3,423,909 shares in the last quarter. Finally, Nuveen LLC purchased a new stake in shares of DraftKings in the first quarter valued at approximately $107,739,000. 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.