DraftKings (NASDAQ:DKNG) Stock Price Target Cut by Citigroup

Key Points

• Citigroup cut DraftKings’ price target from $32 to $28 but maintained a “Buy” rating, implying approximately 42% upside from the stock’s previous close.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and average price target of $33.70, despite several recent target reductions.
• DraftKings shares rose 0.4% to $19.66, near their one-year low, while the company reported quarterly revenue of $1.44 billion and analysts project full-year EPS of $0.40.

DraftKings (NASDAQ:DKNG - Get Free Report) had its price objective decreased by equities research analysts at Citigroup from $32.00 to $28.00 in a research report issued to clients and investors on Monday, Benzinga reports. The firm presently has a "buy" rating on the stock. Citigroup's price objective indicates a potential upside of 42.42% from the stock's previous close.

A number of other research analysts have also commented on DKNG. BTIG Research lowered their price objective on DraftKings from $30.00 to $25.00 and set a "buy" rating on the stock in a report on Thursday, October 1st. UBS Group cut their price objective on DraftKings from $49.00 to $48.00 and set a "buy" rating on the stock in a research note on Friday, September 18th. Benchmark boosted their target price on DraftKings from $29.00 to $30.00 and gave the stock a "buy" rating in a report on Friday, August 7th. Wolfe Research assumed coverage on DraftKings in a research report on Wednesday, September 2nd. They set an "outperform" rating and a $40.00 target price for the company. Finally, Barclays decreased their target price on DraftKings from $35.00 to $34.00 and set an "overweight" rating for the company in a research report on Monday, August 10th. One research analyst has rated the stock with a Strong Buy rating, thirty have given a Buy rating, seven have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $33.70.

DraftKings Stock Up 0.4%

NASDAQ:DKNG traded up $0.08 during trading hours on Monday, reaching $19.66. The company's stock had a trading volume of 10,153,054 shares, compared to its average volume of 13,604,860. The company has a market cap of $9.76 billion, a price-to-earnings ratio of -51.74, a price-to-earnings-growth ratio of 1.97 and a beta of 1.61. DraftKings has a one year low of $18.52 and a one year high of $36.98. The business's 50-day moving average is $23.12 and its 200-day moving average is $24.06. The company has a debt-to-equity ratio of 3.22, a current ratio of 1.02 and a quick ratio of 1.02.

DraftKings (NASDAQ:DKNG - Get Free Report) last posted its earnings results on Friday, August 7th. The company reported $0.09 EPS for the quarter, topping the consensus estimate of $0.02 by $0.07. DraftKings had a negative net margin of 2.68% and a negative return on equity of 11.26%. The firm had revenue of $1.44 billion for the quarter, compared to the consensus estimate of $1.51 billion. During the same period in the prior year, the business posted $0.30 earnings per share. The business's quarterly revenue was down 4.6% on a year-over-year basis. Equities research analysts predict that DraftKings will post 0.40 EPS for the current 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 transaction of $258,753.95. Following the completion of the sale, the director directly owned 1,881 shares in the company, valued at $45,238.05. This represents a 85.12% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 47.18% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On DraftKings

Several hedge funds and other institutional investors have recently made changes to their positions in DKNG. Farther Finance Advisors LLC raised its stake in shares of DraftKings by 17.3% in the third quarter. Farther Finance Advisors LLC now owns 15,750 shares of the company's stock valued at $299,000 after purchasing an additional 2,324 shares in the last quarter. CX Institutional lifted its position in DraftKings by 213.8% in the third quarter. CX Institutional now owns 3,876 shares of the company's stock worth $74,000 after purchasing an additional 2,641 shares during the period. QRG Capital Management Inc. lifted its position in DraftKings by 30.6% in the second quarter. QRG Capital Management Inc. now owns 65,476 shares of the company's stock worth $1,654,000 after purchasing an additional 15,358 shares during the period. Envestnet Portfolio Solutions Inc. lifted its position in DraftKings by 9.0% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 13,744 shares of the company's stock worth $347,000 after purchasing an additional 1,139 shares during the period. Finally, RFG Advisory LLC boosted its stake in DraftKings by 14.2% during the second quarter. RFG Advisory LLC now owns 47,834 shares of the company's stock worth $1,208,000 after buying an additional 5,930 shares in the last quarter. 37.70% of the stock is owned by institutional investors and hedge funds.

About DraftKings

DraftKings Inc is a digital sports entertainment and gaming company that provides online sports betting, daily fantasy sports and internet-based casino gaming. Its products are delivered through mobile applications and websites, allowing customers to wager on professional and collegiate sports, participate in fantasy contests and play a range of casino games where permitted by law.

The company also offers sports and betting-related content through DraftKings Network and operates additional gaming and entertainment products, including online lottery services in select markets.

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