DraftKings (NASDAQ:DKNG) Downgraded to Hold Rating by Wall Street Zen

Wall Street Zen lowered shares of DraftKings (NASDAQ:DKNG) from a buy rating to a hold rating in a research report sent to investors on Friday morning.

Several other analysts have also recently commented on the company. Benchmark dropped their price target on DraftKings from $53.00 to $43.00 and set a “buy” rating for the company in a research report on Thursday. Jefferies Financial Group set a $54.00 target price on shares of DraftKings in a research note on Thursday, August 21st. Oppenheimer dropped their target price on shares of DraftKings from $60.00 to $55.00 and set an “outperform” rating for the company in a report on Wednesday, October 1st. Stifel Nicolaus decreased their price target on shares of DraftKings from $53.00 to $51.00 and set a “buy” rating on the stock in a research note on Wednesday, July 16th. Finally, Citigroup restated a “neutral” rating on shares of DraftKings in a research report on Wednesday. Twenty-six equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, DraftKings has an average rating of “Moderate Buy” and an average target price of $53.89.

DraftKings Stock Up 1.4%

DKNG opened at $35.37 on Friday. The company has a market cap of $17.56 billion, a PE ratio of -54.42, a price-to-earnings-growth ratio of 0.93 and a beta of 1.99. DraftKings has a twelve month low of $29.64 and a twelve month high of $53.61. The company has a 50-day moving average price of $44.25 and a 200 day moving average price of $39.81. The company has a quick ratio of 1.34, a current ratio of 1.34 and a debt-to-equity ratio of 1.82.

DraftKings (NASDAQ:DKNG) last posted its quarterly earnings data on Thursday, August 7th. The company reported $0.30 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.16 by $0.14. DraftKings had a negative return on equity of 30.06% and a negative net margin of 5.63%.The company had revenue of $1.51 billion for the quarter, compared to analysts’ expectations of $1.39 billion. During the same period in the previous year, the firm posted $0.12 EPS. DraftKings’s revenue was up 36.9% compared to the same quarter last year. DraftKings has set its FY 2025 guidance at EPS. Sell-side analysts expect that DraftKings will post 0.64 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other DraftKings news, Director Ryan R. Moore sold 76,390 shares of DraftKings stock in a transaction dated Thursday, August 21st. The stock was sold at an average price of $45.92, for a total value of $3,507,828.80. Following the completion of the transaction, the director directly owned 402 shares of the company’s stock, valued at $18,459.84. The trade was a 99.48% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider R Stanton Dodge sold 105,554 shares of the stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $47.37, for a total transaction of $5,000,092.98. Following the sale, the insider directly owned 512,181 shares in the company, valued at $24,262,013.97. This represents a 17.09% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 658,331 shares of company stock valued at $29,285,365. Insiders own 47.08% 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 the business. Vanguard Group Inc. increased its position in shares of DraftKings by 1.6% during the second quarter. Vanguard Group Inc. now owns 43,761,344 shares of the company’s stock worth $1,876,924,000 after acquiring an additional 670,884 shares during the period. T. Rowe Price Investment Management Inc. boosted its holdings in DraftKings by 0.7% in the first quarter. T. Rowe Price Investment Management Inc. now owns 18,700,071 shares of the company’s stock valued at $621,030,000 after purchasing an additional 130,434 shares during the period. Geode Capital Management LLC grew its stake in DraftKings by 5.4% during the 2nd quarter. Geode Capital Management LLC now owns 9,014,088 shares of the company’s stock worth $385,552,000 after purchasing an additional 458,452 shares in the last quarter. Norges Bank purchased a new stake in DraftKings during the 2nd quarter worth about $362,554,000. Finally, Baillie Gifford & Co. raised its position in DraftKings by 26.5% in the 1st quarter. Baillie Gifford & Co. now owns 8,390,236 shares of the company’s stock valued at $278,640,000 after purchasing an additional 1,756,778 shares in the last quarter. 37.70% of the stock is currently owned by institutional investors and hedge funds.

DraftKings Company Profile

DraftKings Inc operates as a digital sports entertainment and gaming company in the United States and internationally. It provides online sports betting and casino, daily fantasy sports, media, and other consumer products, as well as retails sportsbooks. The company also engages in the design and development of sports betting and casino gaming software for online and retail sportsbooks, and iGaming operators.