DraftKings (NASDAQ:DKNG) Stock Price Target Lowered at Citigroup

Key Points

• Citigroup lowered DraftKings’ price target from $28 to $22 but maintained its Buy rating; the new target implies about 15% upside from the share price cited in the article.
• Analyst views have grown more cautious: JPMorgan cut its rating to Neutral and lowered its target to $21, while other firms also reduced targets. MarketBeat’s consensus remained Moderate Buy, with an average target of $27.61.
• DraftKings’ latest quarter missed earnings and revenue estimates: it reported a $0.53-per-share loss and $1.33 billion in revenue, though revenue rose 16.2% year over year. CFO Alan Ellingson bought roughly $350,000 of shares.

DraftKings (NASDAQ:DKNG - Get Free Report) had its price target decreased by equities research analysts at Citigroup from $28.00 to $22.00 in a research note issued to investors on Tuesday, Benzinga reports. The firm currently has a "buy" rating on the stock. Citigroup's target price would suggest a potential upside of 15.39% from the company's current price.

Several other brokerages have also recently issued reports on DKNG. JPMorgan Chase & Co. cut shares of DraftKings from an "overweight" rating to a "neutral" rating and cut their target price for the stock from $30.00 to $21.00 in a report on Monday. Susquehanna reiterated a "positive" rating and issued a $23.00 price target on shares of DraftKings in a report on Monday. Citizens Jmp reduced their price objective on shares of DraftKings from $37.00 to $35.00 and set a "market outperform" rating on the stock in a research report on Thursday, September 24th. Canaccord Genuity Group decreased their price objective on shares of DraftKings from $40.00 to $30.00 and set a "buy" rating for the company in a report on Monday. Finally, Weiss Ratings cut shares of DraftKings from a "sell (d)" rating to a "sell (e+)" rating in a research report on Friday, August 21st. One analyst has rated the stock with a Strong Buy rating, twenty-five have given a Buy rating, ten have issued a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat, DraftKings presently has an average rating of "Moderate Buy" and an average target price of $27.61.

DraftKings Trading Up 2.0%

Shares of NASDAQ:DKNG traded up $0.36 on Tuesday, reaching $19.07. 16,970,400 shares of the company traded hands, compared to its average volume of 13,846,555. The stock has a market capitalization of $9.46 billion, a P/E ratio of -23.87, a price-to-earnings-growth ratio of 3.03 and a beta of 1.65. The business's 50-day simple moving average is $21.37 and its 200 day simple moving average is $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 has a 52 week low of $16.55 and a 52 week high of $36.98.

DraftKings (NASDAQ:DKNG - Get Free Report) last released its earnings results on Thursday, November 5th. The company reported ($0.53) earnings per share for the quarter, missing analysts' consensus estimates of ($0.41) by ($0.12). DraftKings had a negative net margin of 2.68% and a negative return on equity of 11.26%. The company had revenue of $1.33 billion during the quarter, compared to the consensus estimate of $1.39 billion. During the same period last year, the firm posted ($0.26) EPS. The company's revenue was up 16.2% on a year-over-year basis. As a group, equities analysts anticipate that DraftKings will post 0.31 EPS for the current fiscal year.

Insider Buying and Selling at DraftKings

In other news, CFO Alan Ellingson acquired 18,908 shares of the firm's stock in a transaction on 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 acquisition, the chief financial officer owned 214,692 shares in the company, valued at $3,973,948.92. This trade represents a 9.66% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Jocelyn Moore sold 10,759 shares of the firm's stock in a transaction on 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 of the company's stock, valued at $45,238.05. This represents a 85.12% decrease in their position. 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. 47.18% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On DraftKings

Institutional investors and hedge funds have recently made changes to their positions in the business. Edgestream Partners L.P. purchased a new stake in shares of DraftKings in the 3rd quarter worth approximately $870,000. HighTower Advisors LLC boosted its holdings in DraftKings by 5.0% in the third 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 in the last quarter. Ibex Investors LLC boosted its holdings in DraftKings by 92.3% in the third 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 in the last quarter. Machina Capital S.A.S. bought a new stake in DraftKings in the third quarter worth $224,000. Finally, Illinois Municipal Retirement Fund grew its stake in shares of DraftKings by 2.2% in the third quarter. Illinois Municipal Retirement Fund now owns 124,757 shares of the company's stock worth $2,370,000 after acquiring an additional 2,684 shares during the last quarter. Institutional investors own 37.70% of the company's stock.

DraftKings News Summary

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 ownership by 9.66%. The insider purchase may signal confidence, though it does not resolve concerns about DraftKings’ earnings outlook. CFO stock purchase
• Negative Sentiment: DraftKings’ third-quarter revenue grew 16.2% year over year to $1.33 billion but missed estimates; its reported loss of $0.53 per share was also worse than expected. Full-year revenue guidance came in below forecasts, with prediction-market investment adding pressure to profitability and the outlook. Q3 results and outlook
• Negative Sentiment: Wall Street’s response has been broadly cautious: Wells Fargo downgraded DKNG to Equal Weight and cut its price target to $21 from $30, while other firms also lowered targets or downgraded the stock. The downgrades reflect reduced confidence in earnings growth as prediction-market spending rises. Analyst pressure on DraftKings
• Negative Sentiment: Investors also face uncertainty over the regulatory outlook for prediction markets, including a looming Supreme Court ruling. Recent coverage says heavy spending tied to the business has weakened the expected 2027 EBITDA outlook, adding to concern that growth may come at the expense of profits. Prediction-market investment and outlook risks

DraftKings Company Profile

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.

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