DraftKings (NASDAQ:DKNG) Upgraded to “Buy” at Bank of America

DraftKings (NASDAQ:DKNG) was upgraded by Bank of America from a “neutral” rating to a “buy” rating in a report released 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 35.38% from the company’s previous close.

Other research analysts also recently issued reports about the company. Northland Securities set a $28.00 price target on DraftKings in a research note on Monday, August 10th. Sanford C. Bernstein boosted their price objective on DraftKings from $27.00 to $29.00 and gave the company an “outperform” rating in a report on Thursday, September 3rd. Guggenheim cut their target price on DraftKings from $35.00 to $33.00 and set a “buy” rating on the stock in a report on Monday, August 10th. JPMorgan Chase & Co. reduced their price target on shares of DraftKings from $34.00 to $33.00 and set an “overweight” rating for the company in a research report on Monday, August 10th. Finally, Needham & Company LLC restated a “buy” rating and set a $35.00 price target on shares of DraftKings in a research note on Friday, September 18th. One analyst has rated the stock with a Strong Buy rating, thirty-one have given a Buy rating, seven have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, DraftKings presently has an average rating of “Moderate Buy” and an average target price of $34.04.

DraftKings Price Performance

DraftKings stock traded up $0.34 during mid-day trading on Monday, reaching $19.94. The company had a trading volume of 7,317,214 shares, compared to its average volume of 13,596,336. The business has a fifty day simple moving average of $23.48 and a 200 day simple moving average of $24.20. The company has a market cap of $9.90 billion, a P/E ratio of -52.41, a P/E/G ratio of 1.87 and a beta of 1.61. DraftKings has a fifty-two week low of $18.52 and a fifty-two week high of $36.98. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 3.22.

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

Insiders Place Their Bets

In other news, Director Jocelyn Moore sold 10,759 shares of DraftKings stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $24.05, for a total value of $258,753.95. Following the completion of the transaction, 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 document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 47.18% of the stock is owned by corporate insiders.

Institutional Trading of DraftKings

A number of large investors have recently modified their holdings of DKNG. Janus Henderson Group PLC grew its position 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 acquiring an additional 2,351,790 shares during the last quarter. Capital World Investors grew its holdings in shares of DraftKings by 181.4% during the 4th 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. Spruce House Investment Management LLC grew its holdings 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 purchasing an additional 5,446,166 shares during the last quarter. Eminence Capital LP raised its position in DraftKings by 34.3% in the 4th quarter. Eminence Capital LP now owns 8,426,755 shares of the company’s stock worth $290,386,000 after purchasing an additional 2,151,892 shares during the period. Finally, Capital Research Global Investors lifted 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 worth $227,978,000 after purchasing an additional 2,372,520 shares during the last quarter. Institutional investors own 37.70% of the company’s stock.

Key Headlines Impacting DraftKings

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: Bank of America upgraded DraftKings from Neutral to Buy and maintained a $27 price target. Analyst Julie Hoover said the stock’s roughly 47% year-over-year decline has improved its risk-reward profile, implying substantial upside from recent levels. DraftKings Stock Jumps After Bank of America Says It’s Time to Buy the Stock
• Positive Sentiment: BofA cited improving prospects for prediction markets, where DraftKings is reportedly the third-largest participant. The bank also said concerns that prediction markets could cannibalize DraftKings’ core sportsbook business have eased, creating a potentially “win-win” growth opportunity. DraftKings upgraded to Buy by BofA on prediction market opportunity
• Positive Sentiment: GuruFocus’s valuation model characterized DraftKings as undervalued following its recent rebound, adding to the bullish narrative among investors looking for a recovery opportunity. Is It Too Late to Buy DraftKings After Rally?
• Neutral Sentiment: DraftKings was prominently featured in casino-stock watchlists, while heightened searches on Zacks indicate increased investor attention. Search activity can support near-term trading interest but does not itself change the company’s fundamentals. Investors Heavily Search DraftKings
• Negative Sentiment: Fanatics is preparing to spend as much as $1 billion promoting its sports-betting business, signaling intensifying competition for customers and advertising share. Why Fanatics Is Doubling Down on Sports Betting

About DraftKings

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.