DraftKings (NASDAQ:DKNG) Price Target Cut to $27.00 by Analysts at Barclays

DraftKings (NASDAQ:DKNG) had its price target dropped by equities researchers at Barclays from $34.00 to $27.00 in a research note issued on Monday, Benzinga reports. The brokerage currently has an “overweight” rating on the stock. Barclays‘s price objective indicates a potential upside of 46.92% from the stock’s previous close.

Other equities analysts have also recently issued reports about the stock. Citigroup decreased their price target on shares of DraftKings from $32.00 to $28.00 and set a “buy” rating for the company in a research report on Monday, October 12th. Wolfe Research started coverage on shares of DraftKings in a research note on Wednesday, September 2nd. They set an “outperform” rating and a $40.00 price target for the company. UBS Group lowered shares of DraftKings from a “buy” rating to a “neutral” rating and cut their price target for the stock from $48.00 to $22.00 in a report on Monday. Northland Securities set a $28.00 price objective on shares of DraftKings in a research note on Monday, August 10th. Finally, Zacks Research downgraded DraftKings from a “hold” rating to a “strong sell” rating in a report on Tuesday, October 13th. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating, nine have given a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $29.61.

DraftKings Trading Down 0.7%

Shares of NASDAQ:DKNG traded down $0.13 during midday trading on Monday, hitting $18.38. 5,100,668 shares of the stock were exchanged, compared to its average volume of 13,726,860. The stock has a market capitalization of $9.12 billion, a price-to-earnings ratio of -23.01, a P/E/G ratio of 2.43 and a beta of 1.65. The company has a debt-to-equity ratio of 3.22, a quick ratio of 1.02 and a current ratio of 1.02. The business’s 50-day moving average price is $21.51 and its 200 day moving average price is $24.06. DraftKings has a 12 month low of $16.55 and a 12 month high of $36.98.

DraftKings (NASDAQ:DKNG) last issued its quarterly earnings data on Thursday, November 5th. The company reported ($0.53) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.41) by ($0.12). DraftKings had a negative net margin of 5.91% and a negative return on equity of 36.21%. The business had revenue of $1.33 billion during the quarter, compared to the consensus estimate of $1.39 billion. During the same quarter last year, the business earned ($0.26) EPS. The firm’s quarterly revenue was up 16.2% compared to the same quarter last year. Analysts predict that DraftKings will post 0.31 earnings per share for the current year.

Insider Buying and Selling

In other DraftKings news, Director Jocelyn Moore sold 10,759 shares of the stock in a transaction that occurred on 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 sale, the director owned 1,881 shares of the company’s stock, valued at approximately $45,238.05. This represents a 85.12% decrease in their position. The transaction 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 insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Janus Henderson Group PLC raised its stake in 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 buying an additional 2,351,790 shares during the last quarter. Spruce House Investment Management LLC boosted its position in 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. Swiss National Bank boosted its position in DraftKings by 7.4% during the first quarter. Swiss National Bank now owns 1,314,864 shares of the company’s stock valued at $28,427,000 after acquiring an additional 90,400 shares during the last quarter. Bank of New York Mellon Corp acquired a new stake in DraftKings during the 2nd quarter worth about $24,014,000. Finally, Quantinno Capital Management LP grew its holdings in DraftKings by 273.9% during the 1st quarter. Quantinno Capital Management LP now owns 898,241 shares of the company’s stock worth $19,420,000 after acquiring an additional 658,006 shares during the period. Institutional investors and hedge funds own 37.70% of the company’s stock.

Key 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.