DraftKings (NASDAQ:DKNG) Issues Earnings Results

DraftKings (NASDAQ:DKNG) issued its quarterly earnings data on Thursday. The company reported $0.20 EPS for the quarter, missing analysts’ consensus estimates of $0.22 by ($0.02), Briefing.com reports. The company had revenue of $1.65 billion for the quarter, compared to the consensus estimate of $1.63 billion. DraftKings had a return on equity of 12.71% and a net margin of 0.93%.The business’s revenue for the quarter was up 16.8% on a year-over-year basis. During the same period in the prior year, the firm posted ($0.07) earnings per share.

DraftKings Stock Performance

DKNG traded up $0.30 during trading on Friday, hitting $25.52. 28,551,779 shares of the company traded hands, compared to its average volume of 11,618,338. The firm has a market cap of $12.65 billion, a P/E ratio of 425.33, a price-to-earnings-growth ratio of 1.20 and a beta of 1.67. The stock’s fifty day moving average is $23.56 and its 200 day moving average is $28.48. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 2.91. DraftKings has a one year low of $20.46 and a one year high of $48.78.

DraftKings News Roundup

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

Analysts Set New Price Targets

DKNG has been the subject of a number of recent research reports. Moffett Nathanson lowered DraftKings from a “buy” rating to a “neutral” rating and decreased their price objective for the stock from $38.00 to $27.00 in a report on Friday, April 24th. BMO Capital Markets boosted their price objective on DraftKings from $42.00 to $50.00 and gave the stock an “outperform” rating in a report on Tuesday, March 3rd. Canaccord Genuity Group decreased their price objective on DraftKings from $50.00 to $44.00 and set a “buy” rating for the company in a report on Friday, February 13th. JPMorgan Chase & Co. decreased their price objective on DraftKings from $32.00 to $31.00 and set an “overweight” rating for the company in a report on Thursday, April 16th. Finally, Truist Financial reduced their target price on DraftKings from $33.00 to $30.00 and set a “buy” rating for the company in a report on Tuesday, April 21st. Twenty-seven research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $34.66.

Insider Activity at DraftKings

In related news, Director Jocelyn Moore sold 2,150 shares of the stock in a transaction dated Friday, March 13th. The shares were sold at an average price of $25.60, for a total transaction of $55,040.00. Following the completion of the transaction, the director owned 1,406 shares in the company, valued at approximately $35,993.60. This represents a 60.46% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO Erik Bradbury sold 7,268 shares of the stock in a transaction dated Thursday, February 19th. The shares were sold at an average price of $22.50, for a total transaction of $163,530.00. Following the transaction, the chief accounting officer owned 36,736 shares of the company’s stock, valued at approximately $826,560. The trade was a 16.52% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 496,718 shares of company stock worth $12,477,308 in the last ninety days. Corporate insiders own 47.18% of the company’s stock.

Hedge Funds Weigh In On DraftKings

Institutional investors and hedge funds have recently bought and sold shares of the company. Sivia Capital Partners LLC bought a new position in DraftKings during the second quarter valued at $603,000. Main Street Financial Solutions LLC bought a new position in DraftKings during the fourth quarter valued at $230,000. Magnetar Financial LLC bought a new position in DraftKings during the fourth quarter valued at $227,000. PCM Encore LLC bought a new position in DraftKings during the fourth quarter valued at $256,000. Finally, Banco Santander S.A. bought a new position in DraftKings during the fourth quarter valued at $253,000. 37.70% of the stock is owned by institutional investors.

DraftKings Company Profile

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.