Citigroup Has Lowered Expectations for DraftKings (NASDAQ:DKNG) Stock Price

DraftKings (NASDAQ:DKNG) had its price objective decreased by research analysts at Citigroup from $28.00 to $22.00 in a note issued to investors on Tuesday, Benzinga reports. The brokerage currently has a “buy” rating on the stock. Citigroup‘s price objective would indicate a potential upside of 15.39% from the stock’s current price.

DKNG has been the subject of several other reports. Northland Securities set a $28.00 price objective on DraftKings in a report on Monday, August 10th. Moffett Nathanson reiterated a “neutral” rating and issued a $22.00 price target on shares of DraftKings in a research note on Thursday, October 22nd. Barclays decreased their price objective on shares of DraftKings from $34.00 to $27.00 and set an “overweight” rating for the company in a report on Monday. Wolfe Research initiated coverage on shares of DraftKings in a research report on Wednesday, September 2nd. They set an “outperform” rating and a $40.00 price objective on the stock. Finally, JPMorgan Chase & Co. downgraded shares of DraftKings from an “overweight” rating to a “neutral” rating and cut their target price for the stock from $30.00 to $21.00 in a research report on Monday. One investment analyst has rated the stock with a Strong Buy rating, twenty-five have assigned a Buy rating, ten have issued a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $27.61.

DraftKings Stock Up 2.0%

Shares of NASDAQ:DKNG traded up $0.36 during trading on Tuesday, reaching $19.07. 16,970,400 shares of the stock traded hands, compared to its average volume of 13,846,555. The stock has a market cap of $9.46 billion, a P/E ratio of -23.87, a price-to-earnings-growth ratio of 3.03 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 stock has a 50-day moving average of $21.37 and a two-hundred day moving average of $23.99. DraftKings has a 52-week low of $16.55 and a 52-week high of $36.98.

DraftKings (NASDAQ:DKNG) last announced its quarterly earnings data on Thursday, November 5th. The company reported ($0.53) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.41) by ($0.12). DraftKings had a negative return on equity of 11.26% and a negative net margin of 2.68%. The firm had revenue of $1.33 billion during the quarter, compared to analysts’ expectations of $1.39 billion. During the same quarter in the previous year, the firm earned ($0.26) earnings per share. DraftKings’s revenue was up 16.2% on a year-over-year basis. As a group, sell-side analysts expect that DraftKings will post 0.31 earnings per share for the current fiscal year.

Insider Activity at DraftKings

In related news, Director Jocelyn Moore sold 10,759 shares of the business’s 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 directly owned 1,881 shares in the company, valued at approximately $45,238.05. The trade was a 85.12% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Alan Ellingson bought 18,908 shares of DraftKings stock in a transaction on Monday, November 9th. The shares were acquired at an average cost of $18.51 per share, with a total value of $349,987.08. Following the completion of the acquisition, the chief financial officer owned 214,692 shares of the company’s stock, valued at $3,973,948.92. The trade was a 9.66% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders own 47.18% of the company’s stock.

Hedge Funds Weigh In On DraftKings

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Janus Henderson Group PLC grew its holdings in DraftKings by 9.3% during the first quarter. Janus Henderson Group PLC now owns 27,665,699 shares of the company’s stock valued at $588,288,000 after purchasing an additional 2,351,790 shares during the period. Spruce House Investment Management LLC lifted its position in shares of DraftKings by 129.6% during 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 buying an additional 5,446,166 shares in the last quarter. Swiss National Bank lifted its position in shares of DraftKings by 7.4% during the 1st quarter. Swiss National Bank now owns 1,314,864 shares of the company’s stock valued at $28,427,000 after buying an additional 90,400 shares in the last quarter. Bank of New York Mellon Corp bought a new position in shares of DraftKings during the 2nd quarter valued at approximately $24,014,000. Finally, Quantinno Capital Management LP grew its stake in shares of DraftKings by 273.9% during the 1st quarter. Quantinno Capital Management LP now owns 898,241 shares of the company’s stock valued at $19,420,000 after acquiring an additional 658,006 shares during the period. 37.70% of the stock is currently owned by hedge funds and other institutional investors.

DraftKings News Roundup

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: CFO Alan Ellingson bought 18,908 shares for about $350,000, increasing his ownership by 9.66%. The insider purchase may signal confidence, though it does not resolve concerns about DraftKings’ earnings outlook. CFO stock purchase
• Negative Sentiment: DraftKings’ third-quarter revenue grew 16.2% year over year to $1.33 billion but missed estimates; its reported loss of $0.53 per share was also worse than expected. Full-year revenue guidance came in below forecasts, with prediction-market investment adding pressure to profitability and the outlook. Q3 results and outlook
• Negative Sentiment: Wall Street’s response has been broadly cautious: Wells Fargo downgraded DKNG to Equal Weight and cut its price target to $21 from $30, while other firms also lowered targets or downgraded the stock. The downgrades reflect reduced confidence in earnings growth as prediction-market spending rises. Analyst pressure on DraftKings
• Negative Sentiment: Investors also face uncertainty over the regulatory outlook for prediction markets, including a looming Supreme Court ruling. Recent coverage says heavy spending tied to the business has weakened the expected 2027 EBITDA outlook, adding to concern that growth may come at the expense of profits. Prediction-market investment and outlook risks

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. Co-founder Jason Robins serves as the company’s chief executive officer.