DraftKings Inc. (NASDAQ:DKNG) Receives Consensus Rating of “Moderate Buy” from Analysts

DraftKings Inc. (NASDAQ:DKNG) has been given an average rating of “Moderate Buy” by the forty-one ratings firms that are covering the firm, Marketbeat Ratings reports. Two equities research analysts have rated the stock with a sell recommendation, seven have issued a hold recommendation, thirty-one have given a buy recommendation and one has given a strong buy recommendation to the company. The average 12 month price objective among brokerages that have issued ratings on the stock in the last year is $34.04.

A number of research firms have recently issued reports on DKNG. Citizens Jmp cut their price objective on DraftKings from $37.00 to $35.00 and set a “market outperform” rating for the company in a research report on Thursday, September 24th. Benchmark boosted their target price on DraftKings from $29.00 to $30.00 and gave the stock a “buy” rating in a report on Friday, August 7th. Guggenheim reduced their price objective on shares of DraftKings from $35.00 to $33.00 and set a “buy” rating for the company in a research report on Monday, August 10th. Sanford C. Bernstein raised their price objective on shares of DraftKings from $27.00 to $29.00 and gave the stock an “outperform” rating in a research report on Thursday, September 3rd. Finally, Bank of America upgraded DraftKings from a “neutral” rating to a “buy” rating and set a $27.00 price objective for the company in a report on Monday.

Insider Activity

In related news, Director Jocelyn Moore sold 10,759 shares of the stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $24.05, for a total transaction of $258,753.95. Following the sale, the director owned 1,881 shares of the company’s stock, valued at $45,238.05. This represents a 85.12% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available 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.

Hedge Funds Weigh In On DraftKings

Several hedge funds have recently bought and sold shares of DKNG. Ascentis Independent Advisors bought a new position in shares of DraftKings in the 1st quarter valued at $27,000. Basecamp Wealth Advisors LLC grew its position in DraftKings by 3,547.1% during the 1st quarter. Basecamp Wealth Advisors LLC now owns 1,240 shares of the company’s stock worth $27,000 after acquiring an additional 1,206 shares during the last quarter. CoreCap Advisors LLC grew its holdings in shares of DraftKings by 336.5% during the second quarter. CoreCap Advisors LLC now owns 1,148 shares of the company’s stock worth $29,000 after purchasing an additional 885 shares during the last quarter. SHP Wealth Management bought a new stake in DraftKings during the 4th quarter worth approximately $42,000. Finally, Root Financial Partners LLC grew its stake in shares of DraftKings by 208.0% in the first quarter. Root Financial Partners LLC now owns 2,775 shares of the company’s stock worth $60,000 after purchasing an additional 1,874 shares during the last quarter. 37.70% of the stock is owned by institutional investors.

DraftKings Stock Performance

Shares of NASDAQ DKNG opened at $19.75 on Friday. DraftKings has a 52 week low of $18.52 and a 52 week high of $36.98. The stock has a market capitalization of $9.80 billion, a PE ratio of -51.97, a price-to-earnings-growth ratio of 1.98 and a beta of 1.61. 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 stock has a 50 day moving average price of $23.38 and a 200 day moving average price of $24.16.

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

DraftKings News Summary

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

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.