DraftKings (NASDAQ:DKNG) Raised to “Buy” at Bank of America

DraftKings (NASDAQ:DKNG) was upgraded by stock analysts at Bank of America from a “neutral” rating to a “buy” rating in a report issued on Monday, MarketBeat.com reports. The brokerage presently has a $27.00 target price on the stock. Bank of America‘s price target would indicate a potential upside of 36.71% from the company’s current price.

DKNG has been the topic of a number of other research reports. Stifel Nicolaus reduced their price objective on DraftKings from $40.00 to $38.00 and set a “buy” rating on the stock in a research note on Wednesday, July 22nd. Truist Financial set a $29.00 price target on shares of DraftKings in a research report on Monday, August 10th. Benchmark increased their price objective on shares of DraftKings from $29.00 to $30.00 and gave the company a “buy” rating in a research report on Friday, August 7th. Barclays lowered their price objective on shares of DraftKings from $35.00 to $34.00 and set an “overweight” rating for the company in a research report on Monday, August 10th. Finally, Deutsche Bank Aktiengesellschaft boosted their target price on shares of DraftKings from $26.00 to $28.00 and gave the stock a “hold” rating in a report on Thursday, July 9th. One analyst has rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating, seven have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, DraftKings currently has an average rating of “Moderate Buy” and a consensus target price of $34.04.

DraftKings Trading Up 0.8%

Shares of DraftKings stock opened at $19.75 on Monday. The firm has a market cap of $9.80 billion, a price-to-earnings ratio of -51.97, a PEG ratio of 1.98 and a beta of 1.61. The business has a 50-day moving average price of $23.38 and a 200-day moving average price of $24.16. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 3.22. DraftKings has a twelve month low of $18.52 and a twelve month high of $36.98.

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

Insider Activity

In related news, Director Jocelyn Moore sold 10,759 shares of DraftKings stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $24.05, for a total transaction of $258,753.95. Following the completion of the transaction, the director directly owned 1,881 shares of the company’s stock, valued at approximately $45,238.05. The trade was a 85.12% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 47.18% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of DKNG. Renaissance Technologies LLC bought a new stake in shares of DraftKings during the 1st quarter worth approximately $17,660,000. Spruce House Investment Management LLC grew its position in DraftKings by 129.6% in 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 acquiring an additional 5,446,166 shares during the last quarter. Janus Henderson Group PLC increased its stake in DraftKings by 9.3% in 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 bought a new stake in shares of DraftKings during the fourth quarter worth $2,157,000. Finally, Capital World Investors lifted its position in shares of DraftKings by 181.4% during 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. Hedge funds and other 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: Bank of America said DraftKings’ risk-reward profile has improved after the stock’s steep decline over the past year. The firm highlighted the company’s prediction-market opportunity and believes concerns that the new business could cannibalize sportsbook revenue have eased. DraftKings upgraded to Buy by BofA
• Positive Sentiment: DraftKings’ DKeX prediction exchange could create a year-round, higher-margin revenue stream. Estimates cited in the coverage suggest $600 million to $800 million of potential revenue by 2027, while prediction markets may reduce reliance on seasonal sports betting and provide cross-selling opportunities. DraftKings prediction-market outlook
• Positive Sentiment: The company’s latest quarterly earnings exceeded expectations, with adjusted earnings of $0.09 per share versus a $0.02 consensus estimate. Some institutional investors have also reportedly accumulated shares near the stock’s 52-week low. DraftKings earnings report
• Neutral Sentiment: Heavy investor searches and inclusion in casino-stock watchlists may increase attention, but these items do not represent new fundamental developments. Zacks DraftKings analysis
• Negative Sentiment: DraftKings remains exposed to declining core revenue, with the latest quarterly revenue down 4.6% year over year to $1.44 billion, below estimates. Its debt-to-equity ratio of 3.22 and competition from Fanatics’ significant marketing spending could pressure margins and financial flexibility. DraftKings stock information

About DraftKings

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.