DraftKings (NASDAQ:DKNG) Stock Rating Lowered by Wall Street Zen

DraftKings (NASDAQ:DKNG) was downgraded by equities research analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a report issued on Friday.

Several other equities analysts also recently weighed in on DKNG. BTIG Research cut their price target on shares of DraftKings from $53.00 to $45.00 and set a “buy” rating on the stock in a report on Thursday. Truist Financial increased their price objective on shares of DraftKings from $50.00 to $55.00 and gave the stock a “buy” rating in a research note on Wednesday, July 16th. Susquehanna restated a “positive” rating and set a $64.00 target price on shares of DraftKings in a research report on Friday, August 8th. Northland Securities reaffirmed an “under perform” rating and issued a $33.00 price target (down from $53.00) on shares of DraftKings in a report on Wednesday. Finally, Northland Capmk lowered DraftKings from a “strong-buy” rating to a “strong sell” rating in a research note on Wednesday. Twenty-six analysts have rated the stock with a Buy rating, one has given a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat, DraftKings presently has an average rating of “Moderate Buy” and a consensus price target of $53.89.

DraftKings Price Performance

Shares of DKNG opened at $35.37 on Friday. The company has a debt-to-equity ratio of 1.82, a current ratio of 1.34 and a quick ratio of 1.34. The company’s fifty day moving average price is $44.25 and its 200-day moving average price is $39.80. DraftKings has a 1-year low of $29.64 and a 1-year high of $53.61. The firm has a market capitalization of $17.56 billion, a PE ratio of -54.42, a price-to-earnings-growth ratio of 0.93 and a beta of 1.99.

DraftKings (NASDAQ:DKNG) last issued its quarterly earnings results on Thursday, August 7th. The company reported $0.30 EPS for the quarter, topping analysts’ consensus estimates of $0.16 by $0.14. The company had revenue of $1.51 billion during the quarter, compared to analysts’ expectations of $1.39 billion. DraftKings had a negative return on equity of 30.06% and a negative net margin of 5.63%.The firm’s revenue was up 36.9% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.12 EPS. DraftKings has set its FY 2025 guidance at EPS. On average, equities research analysts predict that DraftKings will post 0.64 EPS for the current year.

Insider Activity

In other news, Director Jocelyn Moore sold 4,861 shares of DraftKings stock in a transaction on Wednesday, August 13th. The stock was sold at an average price of $43.21, for a total transaction of $210,043.81. Following the transaction, the director owned 1,461 shares in the company, valued at $63,129.81. The trade was a 76.89% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Matthew Kalish sold 210,000 shares of the business’s stock in a transaction dated Tuesday, August 12th. The shares were sold at an average price of $42.90, for a total transaction of $9,009,000.00. Following the transaction, the insider directly owned 4,190,233 shares in the company, valued at approximately $179,760,995.70. The trade was a 4.77% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 658,331 shares of company stock valued at $29,285,365 in the last 90 days. 51.19% of the stock is owned by insiders.

Hedge Funds Weigh In On DraftKings

Institutional investors and hedge funds have recently bought and sold shares of the company. FNY Investment Advisers LLC purchased a new stake in shares of DraftKings in the 1st quarter valued at approximately $26,000. TD Private Client Wealth LLC lifted its holdings in DraftKings by 54.4% in the second quarter. TD Private Client Wealth LLC now owns 800 shares of the company’s stock valued at $34,000 after acquiring an additional 282 shares during the last quarter. Smallwood Wealth Investment Management LLC purchased a new position in DraftKings in the first quarter worth approximately $27,000. GPS Wealth Strategies Group LLC grew its position in DraftKings by 197.9% in the first quarter. GPS Wealth Strategies Group LLC now owns 849 shares of the company’s stock worth $28,000 after acquiring an additional 564 shares during the period. Finally, Bank of Jackson Hole Trust acquired a new stake in DraftKings during the first quarter worth $31,000. 37.70% of the stock is currently owned by institutional investors and hedge funds.

About DraftKings

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.