DraftKings (NASDAQ:DKNG) Price Target Lowered to $48.00 at UBS Group

Key Points

• UBS Group lowered its DraftKings price target to $48 from $49 while maintaining a “buy” rating, implying approximately 115% upside from the stock’s $22.34 price.
• Analyst sentiment remains broadly positive: DraftKings has a “Moderate Buy” consensus rating and an average price target of $34.36, though ratings range from Strong Buy to Sell.
• DraftKings exceeded quarterly EPS estimates but missed revenue expectations, reporting $0.09 EPS and $1.44 billion in revenue, with revenue declining 4.6% year over year.

DraftKings (NASDAQ:DKNG - Get Free Report) had its price target reduced by investment analysts at UBS Group from $49.00 to $48.00 in a research note issued on Friday, Benzinga reports. The firm currently has a "buy" rating on the stock. UBS Group's price objective would suggest a potential upside of 114.86% from the stock's current price.

A number of other brokerages also recently issued reports on DKNG. Weiss Ratings downgraded shares of DraftKings from a "sell (d)" rating to a "sell (e+)" rating in a report on Friday, August 21st. Needham & Company LLC reissued a "buy" rating and set a $35.00 price objective on shares of DraftKings in a report on Friday. Citigroup restated a "market outperform" rating on shares of DraftKings in a research report on Tuesday, September 8th. Truist Financial set a $29.00 target price on shares of DraftKings in a report on Monday, August 10th. Finally, Deutsche Bank Aktiengesellschaft boosted their price target on DraftKings from $26.00 to $28.00 and gave the stock a "hold" rating in a research note on Thursday, July 9th. One analyst has rated the stock with a Strong Buy rating, thirty have given a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, DraftKings has an average rating of "Moderate Buy" and an average target price of $34.36.

DraftKings Stock Down 0.6%

DKNG opened at $22.34 on Friday. The company has a debt-to-equity ratio of 3.22, a current ratio of 1.02 and a quick ratio of 1.02. The business has a 50 day simple moving average of $24.41 and a 200-day simple moving average of $24.58. The stock has a market capitalization of $11.09 billion, a P/E ratio of -58.52, a P/E/G ratio of 1.99 and a beta of 1.63. DraftKings has a 12 month low of $20.46 and a 12 month high of $44.22.

DraftKings (NASDAQ:DKNG - Get Free Report) last announced 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. DraftKings had a negative return on equity of 11.26% and a negative net margin of 2.68%.The firm had revenue of $1.44 billion for the quarter, compared to analyst estimates of $1.51 billion. During the same quarter in the prior year, the company posted $0.30 earnings per share. DraftKings's quarterly revenue was down 4.6% on a year-over-year basis. On average, equities analysts anticipate that DraftKings will post 0.49 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other DraftKings news, Director Jocelyn Moore sold 10,759 shares of the company's stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $24.05, for a total value of $258,753.95. Following the transaction, the director directly owned 1,881 shares in the company, valued at approximately $45,238.05. This represents a 85.12% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 47.18% of the company's stock.

Hedge Funds Weigh In On DraftKings

A number of institutional investors have recently modified their holdings of the company. Ascentis Independent Advisors purchased a new stake in shares of DraftKings during the first quarter valued at approximately $27,000. Basecamp Wealth Advisors LLC lifted its holdings in DraftKings by 3,547.1% in the 1st quarter. Basecamp Wealth Advisors LLC now owns 1,240 shares of the company's stock worth $27,000 after buying an additional 1,206 shares in the last quarter. CoreCap Advisors LLC grew its stake in shares of DraftKings by 336.5% during the second quarter. CoreCap Advisors LLC now owns 1,148 shares of the company's stock valued at $29,000 after acquiring an additional 885 shares in the last quarter. SHP Wealth Management purchased a new stake in shares of DraftKings during the fourth quarter worth about $42,000. Finally, Root Financial Partners LLC lifted its stake in shares of DraftKings by 208.0% in the first quarter. Root Financial Partners LLC now owns 2,775 shares of the company's stock worth $60,000 after acquiring an additional 1,874 shares in the last quarter. Institutional investors and hedge funds own 37.70% of the company's stock.

DraftKings Company Profile

DraftKings Inc is a digital sports entertainment and gaming company that operates online sports betting, iGaming and daily fantasy sports platforms. Its products enable customers to place bets on professional and collegiate sports, play online casino games where permitted, and participate in fantasy contests across a range of sports.

The company also offers related services, including retail sportsbooks in select jurisdictions and sports media content through DraftKings Network. Its offerings are available in U.S.

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