DraftKings (NASDAQ:DKNG) Stock Bumped Down to "Equal Weight" by Wells Fargo & Company

Key Points

• Wells Fargo downgraded DraftKings to Equal Weight from Overweight and cut its price target from $30 to $21, implying about 12.3% upside from the stock’s then-current price.
• Several other analysts also lowered their targets or ratings, although the overall analyst consensus remained Moderate Buy, with an average target of $28.01.
• DraftKings’ latest quarter missed analyst expectations for both earnings and revenue, despite year-over-year revenue growth of 16.2%. CFO Alan Ellingson separately bought 18,908 shares for roughly $350,000.

DraftKings (NASDAQ:DKNG - Get Free Report) was downgraded by research analysts at Wells Fargo & Company from an "overweight" rating to an "equal weight" rating in a research note issued to investors on Monday, FinViz reports. They presently have a $21.00 price target on the stock, down from their prior price target of $30.00. Wells Fargo & Company's price objective would indicate a potential upside of 12.30% from the stock's current price.

DKNG has been the topic of a number of other research reports. Sanford C. Bernstein dropped their target price on DraftKings from $27.00 to $22.00 and set an "outperform" rating on the stock in a report on Monday. Stifel Nicolaus downgraded DraftKings from a "buy" rating to a "hold" rating and decreased their price target for the stock from $32.00 to $21.00 in a report on Monday. Citigroup lowered their price objective on shares of DraftKings from $32.00 to $28.00 and set a "buy" rating on the stock in a research report on Monday, October 12th. Jefferies Financial Group reissued a "buy" rating and issued a $28.00 price objective on shares of DraftKings in a research note on Monday. Finally, Citizens Jmp cut their price objective on shares of DraftKings from $37.00 to $35.00 and set a "market outperform" rating for the company in a research report on Thursday, September 24th. One investment analyst has rated the stock with a Strong Buy rating, twenty-five have issued a Buy rating, nine have issued a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $28.01.

DraftKings Trading Up 1.0%

Shares of DKNG opened at $18.70 on Monday. DraftKings has a fifty-two week low of $16.55 and a fifty-two week high of $36.98. The firm has a 50-day simple moving average of $21.37 and a 200-day simple moving average of $23.99. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 3.22.

DraftKings (NASDAQ:DKNG - Get Free Report) last issued its quarterly earnings results 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). The company had revenue of $1.33 billion during the quarter, compared to analyst estimates of $1.39 billion. DraftKings had a negative net margin of 2.68% and a negative return on equity of 11.26%. The business's revenue was up 16.2% on a year-over-year basis. During the same quarter last year, the firm earned ($0.26) EPS. Equities analysts forecast that DraftKings will post 0.31 EPS for the current year.

Insider Buying and Selling at DraftKings

In other news, CFO Alan Ellingson purchased 18,908 shares of the company's stock in a transaction dated Monday, November 9th. The stock was acquired at an average price of $18.51 per share, for a total transaction of $349,987.08. Following the completion of the transaction, the chief financial officer directly owned 214,692 shares in the company, valued at $3,973,948.92. This represents a 9.66% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this link. Also, Director Jocelyn Moore sold 10,759 shares of the firm's stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $24.05, for a total transaction of $258,753.95. Following the transaction, the director owned 1,881 shares of the company's stock, valued at $45,238.05. This trade represents a 85.12% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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

Hedge funds have recently modified their holdings of the company. Janus Henderson Group PLC raised its position in shares of DraftKings by 9.3% in the first quarter. Janus Henderson Group PLC now owns 27,665,699 shares of the company's stock valued at $588,288,000 after buying an additional 2,351,790 shares during the last quarter. Spruce House Investment Management LLC boosted its position in DraftKings by 129.6% during the first quarter. Spruce House Investment Management LLC now owns 9,650,000 shares of the company's stock worth $208,633,000 after acquiring an additional 5,446,166 shares during the last quarter. Swiss National Bank grew its stake in DraftKings by 7.4% in the 1st quarter. Swiss National Bank now owns 1,314,864 shares of the company's stock worth $28,427,000 after acquiring an additional 90,400 shares during the period. Bank of New York Mellon Corp purchased a new stake in DraftKings in the 2nd quarter worth approximately $24,014,000. Finally, Quantinno Capital Management LP grew its stake in DraftKings by 273.9% in the 1st quarter. Quantinno Capital Management LP now owns 898,241 shares of the company's stock worth $19,420,000 after acquiring an additional 658,006 shares during the period. 37.70% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about DraftKings

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: CFO Alan Ellingson bought 18,908 shares for about $350,000, increasing his stake by 9.66%. The purchase may signal confidence from an executive, though it does not offset the company’s operating challenges. SEC filing
• Neutral Sentiment: Some analysts retained Buy or similar ratings despite cutting their targets, suggesting they still see potential upside if DraftKings executes. Separately, reports point to rising hopes for legal sports betting in Texas, although prediction-market activity is drawing scrutiny. Texas betting hopes and prediction markets
• Negative Sentiment: Third-quarter revenue rose 16% year over year but missed expectations, and adjusted earnings were also worse than forecast. Higher spending on its new prediction-markets business is weighing on profitability; DraftKings cut its 2026 outlook, while commentary on the 2027 outlook has been mixed. Q3 earnings call highlights
• Negative Sentiment: Analysts including JPMorgan, UBS and Stifel downgraded the stock, and multiple firms cut price targets following the results and guidance. JPMorgan moved its rating to Neutral and lowered its target to $21, reflecting greater concern about the outlook. Analyst downgrades and prediction-market losses
• Negative Sentiment: A shareholder-investigation firm announced it is examining potential securities claims involving DraftKings, adding a legal overhang; the notice does not establish that a claim has merit. Shareholder 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.

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