DraftKings (NASDAQ:DKNG) Stock Gets Price Target Reduction from Barclays

DraftKings (NASDAQ:DKNG) had its price objective cut by Barclays from $34.00 to $27.00 in a research report report published on Monday morning,Benzinga reports. They currently have an overweight rating on the stock.

A number of other brokerages have also recently commented on DKNG. Weiss Ratings cut DraftKings from a “sell (d)” rating to a “sell (e+)” rating in a report on Friday, August 21st. Sanford C. Bernstein lowered their price target on DraftKings from $27.00 to $22.00 and set an “outperform” rating on the stock in a research note on Monday. UBS Group lowered DraftKings from a “buy” rating to a “neutral” rating and lowered their price target for the stock from $48.00 to $22.00 in a research note on Monday. Citigroup dropped their price target on DraftKings from $32.00 to $28.00 and set a “buy” rating for the company in a research report on Monday, October 12th. Finally, Benchmark increased their price objective on DraftKings from $29.00 to $30.00 and gave the company a “buy” rating in a research note on Friday, August 7th. One research analyst has rated the stock with a Strong Buy rating, twenty-five have given a Buy rating, ten have assigned a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, DraftKings currently has a consensus rating of “Moderate Buy” and an average price target of $27.61.

DraftKings Stock Up 1.4%

DKNG opened at $19.64 on Monday. The company has a market cap of $9.79 billion, a PE ratio of -24.55, a price-to-earnings-growth ratio of 2.54 and a beta of 1.65. DraftKings has a twelve month low of $16.55 and a twelve month high of $36.98. The company has a 50-day moving average price of $21.20 and a 200 day moving average price of $23.88. The company has a quick ratio of 1.02, a current ratio of 0.99 and a debt-to-equity ratio of 12.21.

DraftKings (NASDAQ:DKNG) last posted its quarterly earnings data on Thursday, November 5th. The company reported ($0.53) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.41) by ($0.12). DraftKings had a negative return on equity of 43.92% and a negative net margin of 5.91%. The firm had revenue of $1.33 billion during the quarter, compared to analyst estimates of $1.39 billion. During the same quarter in the previous year, the firm posted ($0.26) earnings per share. The company’s quarterly revenue was up 16.2% on a year-over-year basis. Sell-side analysts expect that DraftKings will post 0.31 earnings per share for the current fiscal year.

Insider Transactions at DraftKings

In other DraftKings news, CFO Alan Ellingson acquired 18,908 shares of the company’s stock in a transaction that occurred on Monday, November 9th. The stock was bought at an average price of $18.51 per share, with a total value of $349,987.08. Following the purchase, the chief financial officer owned 214,692 shares in the company, valued at approximately $3,973,948.92. The trade was a 9.66% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Jocelyn Moore sold 10,759 shares of the firm’s stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $24.05, for a total transaction of $258,753.95. Following the completion of the transaction, the director directly owned 1,881 shares in the company, valued at $45,238.05. This trade represents a 85.12% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 47.18% of the company’s stock.

Institutional Investors Weigh In On DraftKings

Several hedge funds and other institutional investors have recently made changes to their positions in DKNG. Private Advisor Group LLC grew its holdings in DraftKings by 11.0% in the 3rd quarter. Private Advisor Group LLC now owns 74,437 shares of the company’s stock valued at $1,414,000 after buying an additional 7,356 shares in the last quarter. Edgestream Partners L.P. acquired a new stake in shares of DraftKings in the 3rd quarter worth $870,000. HighTower Advisors LLC raised its holdings in shares of DraftKings by 5.0% during the 3rd quarter. HighTower Advisors LLC now owns 134,098 shares of the company’s stock worth $2,548,000 after acquiring an additional 6,403 shares during the period. Ibex Investors LLC raised its holdings in shares of DraftKings by 92.3% during the 3rd quarter. Ibex Investors LLC now owns 125,000 shares of the company’s stock worth $2,375,000 after acquiring an additional 60,000 shares during the period. Finally, Machina Capital S.A.S. purchased a new position in shares of DraftKings during the 3rd quarter worth $224,000. Institutional investors and hedge funds own 37.70% of the company’s stock.

Recent DraftKings Headlines

These are some of the DKNG headlines that stood out recently:

• Negative Sentiment: Several firms cut DraftKings’ ratings or price targets after its latest results and outlook reset. JPMorgan lowered its rating, while Bernstein, Barclays, TD Cowen, Truist, BTIG and Canaccord issued target cuts or more cautious forecasts, signaling diminished confidence in near-term earnings prospects. JPMorgan rating change
• Negative Sentiment: The main concern is the expense and uncertain economics of DraftKings’ Predictions business. An investigation by Levi & Korsinsky questions whether SEC filings adequately disclosed the investment’s costs before the company cited a $650 million to $700 million commitment. The inquiry is an allegation, not a finding of wrongdoing. Levi & Korsinsky investigation notice
• Negative Sentiment: Rosen Law Firm also announced an investigation into potential securities claims, alleging DraftKings may have provided materially misleading business information. The announcement creates a legal overhang but does not establish that the claims have merit. Rosen Law Firm investigation notice

About DraftKings

DraftKings Inc. is a digital sports and entertainment company founded in 2012. It began as a daily fantasy sports platform and has since expanded into online sports betting and gaming. The company offers daily fantasy contests, a sportsbook and online casino products, including games such as slots and table games. Its services are available in a range of U.S. jurisdictions and in Ontario, Canada, where permitted by local regulations. DraftKings is headquartered in Boston, Massachusetts. Co-founder Jason Robins serves as the company’s chief executive officer.