DraftKings Inc. (NASDAQ:DKNG) Receives $34.21 Average PT from Analysts

DraftKings Inc. (NASDAQ:DKNG) has received an average recommendation of “Moderate Buy” from the forty analysts that are presently covering the company, MarketBeat Ratings reports. Two equities research analysts have rated the stock with a sell recommendation, eight have issued a hold recommendation, twenty-nine have issued a buy recommendation and one has given a strong buy recommendation to the company. The average 12-month price target among brokers that have issued a report on the stock in the last year is $34.2710.

A number of equities research analysts recently issued reports on DKNG shares. Moffett Nathanson cut shares of DraftKings from a “buy” rating to a “neutral” rating and dropped their target price for the stock from $38.00 to $27.00 in a research report on Friday, April 24th. BTIG Research increased their target price on shares of DraftKings from $28.00 to $30.00 and gave the stock a “buy” rating in a research report on Friday, May 8th. Scotiabank upgraded shares of DraftKings to an “outperform” rating in a research report on Friday, April 24th. Truist Financial dropped their target price on shares of DraftKings from $33.00 to $30.00 and set a “buy” rating for the company in a research report on Tuesday, April 21st. Finally, Barclays increased their target price on shares of DraftKings from $33.00 to $35.00 and gave the stock an “overweight” rating in a research report on Monday, May 11th.

DraftKings Stock Performance

Shares of DraftKings stock opened at $25.70 on Wednesday. The stock has a market capitalization of $12.75 billion, a P/E ratio of 428.33 and a beta of 1.66. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 3.03. The company has a 50-day simple moving average of $25.09 and a 200 day simple moving average of $27.02. DraftKings has a 12-month low of $20.46 and a 12-month high of $48.78.

DraftKings (NASDAQ:DKNG) last announced its earnings results on Friday, May 8th. The company reported $0.20 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.22 by ($0.02). The firm had revenue of $1.65 billion for the quarter, compared to analyst estimates of $1.63 billion. DraftKings had a return on equity of 13.51% and a net margin of 0.93%.The company’s revenue for the quarter was up 16.8% compared to the same quarter last year. During the same quarter last year, the business earned ($0.07) EPS. Research analysts expect that DraftKings will post 0.6 earnings per share for the current fiscal year.

Key Stories Impacting DraftKings

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: DraftKings launched DKeX, its proprietary prediction markets exchange, and integrated it into the DraftKings: Sports & Casino app, giving the company more control over product design, economics, and the customer experience. DraftKings Launches Proprietary Exchange to Bolster Differentiated Predictions Experience
• Positive Sentiment: Investors are encouraged by evidence that DraftKings’ Predictions business is gaining traction, with recent filings showing rising trading volume and management signaling that prediction markets could become a meaningful part of its long-term “super app” strategy. DraftKings Gains as Investors Cheer Prediction-Market Push
• Positive Sentiment: Analyst commentary and recent price-target updates remain constructive, reinforcing the view that the prediction-markets rollout could support revenue growth and sentiment around the stock. DraftKings Shares Climb After Company Unveils DKeX, Its Own Prediction Markets Exchange
• Neutral Sentiment: Some reports note that DraftKings remains volatile as investors balance the upside from prediction markets against profitability, litigation, and macroeconomic risks. DraftKings shares volatile as investors weigh prediction market growth against profitability risks
• Negative Sentiment: Recent articles also highlighted pressure from broader market weakness and concerns about competition, reminding investors that the stock can still swing sharply even after the product launch. Why Is DraftKings Stock Falling On Thursday?

Insider Transactions at DraftKings

In other DraftKings news, insider R Stanton Dodge sold 62,500 shares of the stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $29.68, for a total transaction of $1,855,000.00. Following the sale, the insider owned 556,258 shares of the company’s stock, valued at $16,509,737.44. This represents a 10.10% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Woodrow Levin sold 34,234 shares of the stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $25.71, for a total transaction of $880,156.14. Following the sale, the director directly owned 29,820 shares in the company, valued at approximately $766,672.20. This represents a 53.45% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 97,596 shares of company stock worth $2,756,991. Insiders own 47.18% of the company’s stock.

Institutional Investors Weigh In On DraftKings

A number of hedge funds have recently added to or reduced their stakes in DKNG. Viking Global Investors LP bought a new stake in DraftKings during the 3rd quarter worth about $561,125,000. Capital World Investors grew its holdings in DraftKings by 181.4% during the 4th quarter. Capital World Investors now owns 18,626,429 shares of the company’s stock worth $641,867,000 after acquiring an additional 12,008,357 shares during the last quarter. Janus Henderson Group PLC grew its holdings in DraftKings by 50.8% during the 4th quarter. Janus Henderson Group PLC now owns 25,313,909 shares of the company’s stock worth $858,893,000 after acquiring an additional 8,524,923 shares during the last quarter. Norges Bank bought a new stake in DraftKings during the 4th quarter worth about $284,466,000. Finally, Spruce House Investment Management LLC boosted its stake in shares of 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 purchasing an additional 5,446,166 shares during the last quarter. Institutional investors own 37.70% of the company’s stock.

About DraftKings

DraftKings Inc is a leading digital sports entertainment and gaming company specializing in daily fantasy sports, sports betting and iGaming products. The company provides an integrated platform where users can participate in daily fantasy contests, place wagers on professional sports events, and enjoy a range of online casino-style games. DraftKings’ proprietary technology supports real-time odds, live scoring and advanced analytics to enhance the user experience across mobile and desktop applications.

Founded in 2012 by co-founders Jason Robins, Matthew Kalish and Paul Liberman, DraftKings began as a daily fantasy sports provider and rapidly expanded into regulated sports betting following legislative changes in the United States.