DraftKings (NASDAQ:DKNG) Stock Rating Upgraded by Bank of America

DraftKings (NASDAQ:DKNG) was upgraded by investment analysts at Bank of America from a “neutral” rating to a “buy” rating in a note issued to investors on Monday, MarketBeat reports. The firm presently has a $27.00 target price on the stock. Bank of America‘s target price would indicate a potential upside of 36.60% from the stock’s previous close.

A number of other analysts have also issued reports on DKNG. Sanford C. Bernstein boosted their price target on shares of DraftKings from $27.00 to $29.00 and gave the stock an “outperform” rating in a research note on Thursday, September 3rd. Truist Financial set a $29.00 price target on shares of DraftKings in a research note on Monday, August 10th. JPMorgan Chase & Co. cut their price target on shares of DraftKings from $34.00 to $33.00 and set an “overweight” rating on the stock in a research note on Monday, August 10th. Guggenheim cut their target price on shares of DraftKings from $35.00 to $33.00 and set a “buy” rating on the stock in a research note on Monday, August 10th. Finally, Citizens Jmp cut their target price on shares of DraftKings from $37.00 to $35.00 and set a “market outperform” rating on the stock in a research note on Thursday, September 24th. One research analyst has rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, DraftKings presently has an average rating of “Moderate Buy” and a consensus price target of $34.04.

DraftKings Trading Up 0.8%

NASDAQ:DKNG traded up $0.17 on Monday, reaching $19.77. 4,561,647 shares of the company’s stock were exchanged, compared to its average volume of 13,582,019. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 3.22. The firm has a market capitalization of $9.81 billion, a price-to-earnings ratio of -52.15, a price-to-earnings-growth ratio of 1.87 and a beta of 1.61. The business has a fifty day moving average of $23.48 and a 200-day moving average of $24.20. DraftKings has a 52-week low of $18.52 and a 52-week high of $36.98.

DraftKings (NASDAQ:DKNG) last issued its quarterly earnings results on Friday, August 7th. The company reported $0.09 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.02 by $0.07. The company had revenue of $1.44 billion for the quarter, compared to analyst estimates 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 revenue for the quarter was down 4.6% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.30 earnings per share. As a group, analysts expect that DraftKings will post 0.4 earnings per share for the current year.

Insider Buying and Selling at DraftKings

In related news, Director Jocelyn Moore sold 10,759 shares of the company’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 sale, the director directly owned 1,881 shares in the company, valued at approximately $45,238.05. This represents a 85.12% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 47.18% of the company’s stock.

Hedge Funds Weigh In On DraftKings

Hedge funds have recently added to or reduced their stakes in the stock. Janus Henderson Group PLC increased its stake in DraftKings by 50.8% in the fourth quarter. Janus Henderson Group PLC now owns 25,313,909 shares of the company’s stock valued at $858,893,000 after purchasing an additional 8,524,923 shares during the last quarter. Capital World Investors increased its stake in DraftKings by 181.4% in the fourth quarter. Capital World Investors now owns 18,626,429 shares of the company’s stock valued at $641,867,000 after purchasing an additional 12,008,357 shares during the last quarter. Eminence Capital LP increased its stake in DraftKings by 34.3% in the fourth quarter. Eminence Capital LP now owns 8,426,755 shares of the company’s stock valued at $290,386,000 after purchasing an additional 2,151,892 shares during the last quarter. Capital Research Global Investors increased its stake in DraftKings by 55.9% in the fourth quarter. Capital Research Global Investors now owns 6,615,721 shares of the company’s stock valued at $227,978,000 after purchasing an additional 2,372,520 shares during the last quarter. Finally, Spruce House Investment Management LLC increased its stake in DraftKings by 129.6% in the first quarter. Spruce House Investment Management LLC now owns 9,650,000 shares of the company’s stock valued at $208,633,000 after purchasing an additional 5,446,166 shares during the last quarter. 37.70% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting DraftKings

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.