DraftKings Inc. (NASDAQ:DKNG) Given Average Rating of “Moderate Buy” by Brokerages

Shares of DraftKings Inc. (NASDAQ:DKNG) have been assigned an average rating of “Moderate Buy” from the thirty-seven analysts that are currently covering the firm, Marketbeat.com reports. Two equities research analysts have rated the stock with a sell recommendation, eight have issued a hold recommendation and twenty-seven have issued a buy recommendation on the company. The average 12-month target price among analysts that have issued ratings on the stock in the last year is $34.6571.

DKNG has been the topic of a number of recent research reports. Raymond James Financial raised shares of DraftKings from a “market perform” rating to an “outperform” rating in a research note on Friday, April 24th. Sanford C. Bernstein reaffirmed an “outperform” rating and issued a $30.00 price objective on shares of DraftKings in a research note on Thursday, March 5th. Scotiabank raised shares of DraftKings to an “outperform” rating in a research report on Friday, April 24th. Morgan Stanley reduced their price target on shares of DraftKings from $53.00 to $40.00 and set an “overweight” rating on the stock in a research report on Tuesday, February 24th. Finally, Truist Financial reduced their price target on shares of DraftKings from $33.00 to $30.00 and set a “buy” rating on the stock in a research report on Tuesday, April 21st.

Insider Activity

In other news, Director Jocelyn Moore sold 2,150 shares of DraftKings stock in a transaction on Friday, March 13th. The shares were sold at an average price of $25.60, for a total transaction of $55,040.00. Following the transaction, the director directly owned 1,406 shares of the company’s stock, valued at $35,993.60. This trade represents a 60.46% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CAO Erik Bradbury sold 7,268 shares of DraftKings stock in a transaction on Thursday, February 19th. The stock was sold at an average price of $22.50, for a total transaction of $163,530.00. Following the transaction, the chief accounting officer directly owned 36,736 shares in the company, valued at approximately $826,560. This represents a 16.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 496,718 shares of company stock valued at $12,477,308. 47.18% of the stock is owned by company insiders.

Institutional Investors Weigh In On DraftKings

A number of hedge funds and other institutional investors have recently made changes to their positions in DKNG. Viking Global Investors LP acquired a new stake in shares of DraftKings during the third quarter worth $561,125,000. Capital World Investors raised its holdings in shares of DraftKings by 181.4% during the fourth 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 period. Janus Henderson Group PLC raised its holdings in shares of DraftKings by 50.8% during the fourth 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 period. Norges Bank acquired a new stake in shares of DraftKings during the fourth quarter worth $284,466,000. Finally, AQR Capital Management LLC raised its holdings in shares of DraftKings by 41.0% during the fourth quarter. AQR Capital Management LLC now owns 16,474,009 shares of the company’s stock worth $567,694,000 after acquiring an additional 4,788,337 shares during the period. 37.70% of the stock is currently owned by institutional investors and hedge funds.

DraftKings News Summary

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: Revenue for Q1 came in at $1.65 billion, beating Wall Street estimates and rising about 17% year over year, helped by strong betting margins and continued customer engagement. DraftKings shares gain as Q1 revenue tops estimates on strong betting margins
• Positive Sentiment: DraftKings swung to a profit of $21.1 million, a notable improvement from a loss a year ago, suggesting operating leverage is starting to show through. DraftKings Swings to First-Quarter Profit on Better Sportsbook Margins
• Positive Sentiment: BTIG raised its price target on DraftKings to $30 from $28 and kept a buy rating, signaling continued analyst confidence after the earnings release. Benzinga reference
• Neutral Sentiment: Adjusted earnings of $0.20 per share missed estimates by a small margin, which may limit upside until investors see more consistent EPS execution. DraftKings Reports Strong Start To 2026 With Q1 Double Beat
• Neutral Sentiment: The company reiterated full-year revenue guidance of roughly $6.5 billion to $6.9 billion, which was broadly in line with expectations and suggests management remains cautious but stable on the outlook. DraftKings beats profit estimates but guides below views
• Negative Sentiment: Some investors may focus on the earnings miss and the stock’s below-consensus guidance, which could temper enthusiasm after the strong revenue beat. DraftKings (DKNG) Q1 Earnings Lag Estimates

DraftKings Price Performance

Shares of DKNG stock opened at $25.52 on Tuesday. DraftKings has a 52-week low of $20.46 and a 52-week high of $48.78. The stock has a market cap of $12.65 billion, a PE ratio of 425.33, a PEG ratio of 1.20 and a beta of 1.67. The company has a debt-to-equity ratio of 2.91, a quick ratio of 1.03 and a current ratio of 1.03. The firm’s 50 day moving average price is $23.56 and its two-hundred day moving average price is $28.48.

DraftKings (NASDAQ:DKNG) last announced its quarterly earnings data on Thursday, May 7th. The company reported $0.20 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.22 by ($0.02). DraftKings had a net margin of 0.93% and a return on equity of 12.71%. The business had revenue of $1.65 billion during the quarter, compared to the consensus estimate of $1.63 billion. During the same period in the previous year, the business posted ($0.07) earnings per share. DraftKings’s revenue was up 16.8% compared to the same quarter last year. As a group, analysts forecast that DraftKings will post 0.56 EPS for the current year.

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.