DraftKings (NASDAQ:DKNG) Stock Rating Raised to Buy at Bank of America

DraftKings (NASDAQ:DKNG) was upgraded by research analysts at Bank of America from a “neutral” rating to a “buy” rating in a research report issued on Monday, Marketbeat.com reports. The firm currently has a $27.00 price target on the stock. Bank of America‘s price target points to a potential upside of 35.19% from the company’s current price.

Other equities research analysts have also issued reports about the company. Jefferies Financial Group reiterated a “buy” rating on shares of DraftKings in a research note on Wednesday, June 10th. Moffett Nathanson lowered their target price on DraftKings from $27.00 to $25.00 in a report on Wednesday, July 15th. Guggenheim reduced their price objective on DraftKings from $35.00 to $33.00 and set a “buy” rating on the stock in a research report on Monday, August 10th. JPMorgan Chase & Co. dropped their target price on DraftKings from $34.00 to $33.00 and set an “overweight” rating for the company in a report on Monday, August 10th. Finally, Citigroup reiterated a “market outperform” rating on shares of DraftKings in a report on Monday, September 28th. One analyst has rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating, seven have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $34.04.

DraftKings Stock Performance

NASDAQ DKNG traded up $0.37 during trading hours on Monday, reaching $19.97. The stock had a trading volume of 6,591,224 shares, compared to its average volume of 13,592,271. DraftKings has a 52-week low of $18.52 and a 52-week high of $36.98. The stock has a fifty day moving average of $23.48 and a 200 day moving average of $24.20. 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 market cap of $9.92 billion, a P/E ratio of -52.64, a price-to-earnings-growth ratio of 1.87 and a beta of 1.61.

DraftKings (NASDAQ:DKNG) last announced its quarterly earnings data on Friday, August 7th. The company reported $0.09 EPS for the quarter, beating the consensus estimate of $0.02 by $0.07. The business had revenue of $1.44 billion during the quarter, compared to analysts’ expectations of $1.51 billion. DraftKings had a negative net margin of 2.68% and a negative return on equity of 11.26%. The business’s quarterly revenue was down 4.6% compared to the same quarter last year. During the same period in the previous year, the business posted $0.30 EPS. Sell-side analysts predict that DraftKings will post 0.4 earnings per share for the current year.

Insider Transactions at DraftKings

In other DraftKings news, Director Jocelyn Moore sold 10,759 shares of the stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $24.05, for a total value of $258,753.95. Following the transaction, the director directly owned 1,881 shares in the company, valued at $45,238.05. This represents a 85.12% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 47.18% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of DKNG. CX Institutional lifted its stake in DraftKings by 213.8% in the third quarter. CX Institutional now owns 3,876 shares of the company’s stock valued at $74,000 after buying an additional 2,641 shares during the last quarter. QRG Capital Management Inc. grew its position in shares of DraftKings by 30.6% during the second quarter. QRG Capital Management Inc. now owns 65,476 shares of the company’s stock worth $1,654,000 after acquiring an additional 15,358 shares during the last quarter. Envestnet Portfolio Solutions Inc. increased its holdings in shares of DraftKings by 9.0% in the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 13,744 shares of the company’s stock valued at $347,000 after acquiring an additional 1,139 shares during the period. RFG Advisory LLC increased its holdings in shares of DraftKings by 14.2% in the 2nd quarter. RFG Advisory LLC now owns 47,834 shares of the company’s stock valued at $1,208,000 after acquiring an additional 5,930 shares during the period. Finally, NewEdge Advisors LLC raised its position in DraftKings by 50.4% in the 2nd quarter. NewEdge Advisors LLC now owns 45,486 shares of the company’s stock valued at $1,149,000 after purchasing an additional 15,238 shares during the last quarter. Institutional investors and hedge funds own 37.70% of the company’s stock.

More DraftKings News

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: Prediction-market opportunity drives bullish upgrade: BofA analyst Julie Hoover said DraftKings is now the third-largest player in prediction markets and that concerns about these products cannibalizing the company’s core sportsbook business have eased. BofA views prediction markets as a potential “win-win” growth opportunity, implying substantial upside to the firm’s price target. DraftKings upgraded to Buy by BofA on prediction market opportunity
• Positive Sentiment: Analyst support is improving sentiment: The upgrade has prompted a rebound in DraftKings shares after an extended slump. The $27 target represents meaningful potential appreciation from recent trading levels and may encourage investors who had been waiting for a more favorable entry point. DraftKings Stock Jumps After Bank of America Says It’s Time to Buy
• Neutral Sentiment: Investor attention has increased: DraftKings was among the most heavily searched stocks on Zacks, indicating heightened interest and potentially improving trading momentum. However, search activity alone does not change the company’s earnings outlook. Investors Heavily Search DraftKings
• Neutral Sentiment: Fundamentals remain mixed: DraftKings recently exceeded quarterly EPS expectations, but revenue missed estimates and declined year over year. The stock also remains below its 50-day and 200-day moving averages, highlighting continued technical and execution risks.
• Negative Sentiment: Competition remains a risk: Fanatics plans to invest up to $1 billion in advertising for its sportsbook, potentially intensifying customer-acquisition and promotional spending pressures for DraftKings and other industry leaders. Why Fanatics CEO Michael Rubin Is Doubling Down on Sports Betting

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.