Guggenheim Has Lowered Expectations for DraftKings (NASDAQ:DKNG) Stock Price

DraftKings (NASDAQ:DKNG) had its target price dropped by equities research analysts at Guggenheim from $55.00 to $45.00 in a note issued to investors on Monday,Benzinga reports. The firm presently has a “buy” rating on the stock. Guggenheim’s price target would indicate a potential upside of 44.24% from the stock’s previous close.

Other research analysts have also issued reports about the stock. Truist Financial lowered their target price on shares of DraftKings from $55.00 to $50.00 and set a “buy” rating on the stock in a research report on Tuesday, October 21st. Zacks Research cut DraftKings from a “hold” rating to a “strong sell” rating in a report on Thursday. BMO Capital Markets reduced their price objective on DraftKings from $65.00 to $63.00 and set an “outperform” rating for the company in a report on Tuesday, November 4th. BTIG Research decreased their target price on DraftKings from $45.00 to $42.00 and set a “buy” rating on the stock in a research report on Friday. Finally, Jefferies Financial Group set a $52.00 price target on DraftKings in a research report on Monday, October 6th. Twenty-six analysts have rated the stock with a Buy rating, three have given a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat, DraftKings currently has an average rating of “Moderate Buy” and an average price target of $50.03.

DraftKings Stock Performance

DraftKings stock traded up $0.80 during trading hours on Monday, reaching $31.20. 6,108,949 shares of the stock were exchanged, compared to its average volume of 11,644,555. DraftKings has a 52-week low of $26.23 and a 52-week high of $53.61. The stock has a market cap of $15.49 billion, a P/E ratio of -54.61, a P/E/G ratio of 1.03 and a beta of 1.86. The company has a debt-to-equity ratio of 1.82, a quick ratio of 1.34 and a current ratio of 1.34. The firm’s 50 day moving average is $37.88 and its 200 day moving average is $39.48.

DraftKings (NASDAQ:DKNG) last posted its quarterly earnings results on Thursday, November 6th. The company reported ($0.26) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.01 by ($0.27). DraftKings had a negative return on equity of 21.47% and a negative net margin of 4.90%.The firm had revenue of $1.14 billion for the quarter, compared to analysts’ expectations of $1.40 billion. During the same period in the prior year, the company earned ($0.60) earnings per share. The company’s revenue for the quarter was up 4.4% on a year-over-year basis. DraftKings has set its FY 2025 guidance at EPS. Analysts predict that DraftKings will post 0.64 EPS for the current fiscal year.

Insider Buying and Selling at DraftKings

In related news, Director Jocelyn Moore sold 4,861 shares of the company’s stock in a transaction that occurred on Wednesday, August 13th. The shares were sold at an average price of $43.21, for a total transaction of $210,043.81. Following the completion of the transaction, the director owned 1,461 shares of the company’s stock, valued at approximately $63,129.81. This represents a 76.89% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider R Stanton Dodge sold 52,777 shares of the stock in a transaction that occurred on Thursday, November 6th. The stock was sold at an average price of $29.00, for a total transaction of $1,530,533.00. Following the transaction, the insider directly owned 500,454 shares in the company, valued at approximately $14,513,166. This represents a 9.54% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 552,777 shares of company stock valued at $23,337,924. 47.08% of the stock is currently owned by insiders.

Institutional Trading of DraftKings

A number of institutional investors and hedge funds have recently made changes to their positions in the company. Tredje AP fonden raised its holdings in shares of DraftKings by 3.1% in the 3rd quarter. Tredje AP fonden now owns 55,287 shares of the company’s stock worth $2,068,000 after purchasing an additional 1,673 shares during the period. Darden Wealth Group Inc raised its holdings in DraftKings by 24.7% in the third quarter. Darden Wealth Group Inc now owns 6,060 shares of the company’s stock valued at $227,000 after buying an additional 1,200 shares during the period. Cumberland Partners Ltd acquired a new position in DraftKings during the third quarter valued at approximately $935,000. Alberta Investment Management Corp purchased a new stake in DraftKings during the third quarter worth approximately $1,608,000. Finally, Hodges Capital Management Inc. grew its stake in DraftKings by 0.6% during the third quarter. Hodges Capital Management Inc. now owns 572,943 shares of the company’s stock worth $21,428,000 after buying an additional 3,179 shares during the period. 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.