TD Cowen Has Lowered Expectations for DraftKings (NASDAQ:DKNG) Stock Price

Key Points

• TD Cowen cut DraftKings’ price target from $35 to $25 but maintained its Buy rating; the new target implies about 36% upside from the prior close.
• Analyst views remain broadly positive but mixed: MarketBeat reported a “Moderate Buy” consensus and an average target of $29.29, while other firms also lowered targets and one downgraded the stock to Strong Sell.
• DraftKings’ latest reported quarter missed estimates, with a loss of $0.53 per share versus expectations of $0.41 and revenue of $1.33 billion versus $1.39 billion expected, although revenue grew 16.2% year over year.

DraftKings (NASDAQ:DKNG - Get Free Report) had its price objective decreased by stock analysts at TD Cowen from $35.00 to $25.00 in a report issued on Monday, Benzinga reports. The brokerage presently has a "buy" rating on the stock. TD Cowen's target price points to a potential upside of 35.85% from the company's previous close.

DKNG has been the subject of a number of other research reports. 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. Wolfe Research began coverage on DraftKings in a research note on Wednesday, September 2nd. They issued an "outperform" rating and a $40.00 price objective for the company. Zacks Research cut DraftKings from a "hold" rating to a "strong sell" rating in a report on Tuesday, October 13th. Barclays lowered their target price on DraftKings from $34.00 to $27.00 and set an "overweight" rating on the stock in a research report on Monday. Finally, Bank of America reiterated a "buy" rating on shares of DraftKings in a research report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating, nine have assigned a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat, DraftKings presently has a consensus rating of "Moderate Buy" and an average target price of $29.29.

DraftKings Stock Performance

Shares of NASDAQ DKNG traded down $0.11 during midday trading on Monday, hitting $18.40. 7,039,102 shares of the company's stock traded hands, compared to its average volume of 13,748,758. DraftKings has a 1 year low of $16.55 and a 1 year high of $36.98. The stock has a market capitalization of $9.14 billion, a price-to-earnings ratio of -23.02, a price-to-earnings-growth ratio of 2.43 and a beta of 1.65. The company has a debt-to-equity ratio of 3.22, a quick ratio of 1.02 and a current ratio of 1.02. The firm has a fifty day moving average of $21.51 and a 200 day moving average of $24.06.

DraftKings (NASDAQ:DKNG - Get Free Report) last announced its 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). DraftKings had a negative net margin of 5.91% and a negative return on equity of 36.21%. The business had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.39 billion. During the same quarter last year, the firm posted ($0.26) earnings per share. The business's quarterly revenue was up 16.2% compared to the same quarter last year. On average, analysts forecast that DraftKings will post 0.31 earnings per share for the current year.

Insider Buying and Selling

In other DraftKings news, Director Jocelyn Moore sold 10,759 shares of the business'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 sale, the director owned 1,881 shares in the company, valued at $45,238.05. The trade was a 85.12% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through 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 insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. Janus Henderson Group PLC lifted 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 worth $588,288,000 after buying an additional 2,351,790 shares in the last quarter. Spruce House Investment Management LLC boosted its stake 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 valued at $208,633,000 after buying an additional 5,446,166 shares during the last quarter. Swiss National Bank grew its holdings in DraftKings by 7.4% during the 1st quarter. Swiss National Bank now owns 1,314,864 shares of the company's stock valued at $28,427,000 after buying an additional 90,400 shares in the last quarter. Bank of New York Mellon Corp bought a new stake in DraftKings in the 2nd quarter worth approximately $24,014,000. Finally, Quantinno Capital Management LP raised its holdings in shares of DraftKings by 273.9% during 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 in the last quarter. Hedge funds and other institutional investors own 37.70% of the company's stock.

Trending Headlines about DraftKings

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: BTIG maintained a Buy rating with a $23 target, while Truist kept Buy and Bernstein kept Outperform, despite each cutting its price target. The revised targets imply potential upside from the approximately $18.50 price cited in the reports. BTIG rating information
• Positive Sentiment: A report highlighted rising hopes for legalized sports betting in Texas, a potential longer-term growth opportunity for DraftKings, while scrutiny of prediction markets could also affect the competitive landscape. Article on Texas betting and prediction markets
• Neutral Sentiment: Sportsbook net revenue grew 36% year over year in Q3, but DraftKings expects to invest $650 million to $700 million in its prediction-market business in 2026, raising questions about the cost and payoff of that expansion. Article on DraftKings long-term takeaways
• Negative Sentiment: DraftKings reported worse-than-expected Q3 results and cut fiscal 2026 guidance. The news drove a reported 21% one-session decline and helped push shares to a 52-week low, reinforcing concerns about costs, business challenges and demand. Article on analyst forecasts after Q3 results
• Negative Sentiment: UBS, JPMorgan and Stifel downgraded the stock; JPMorgan moved from Overweight to Neutral, saying it is increasingly difficult to recommend. Several firms also cut targets—including Truist to $22, Bernstein to $22 and BTIG to $23—adding pressure even though the revised targets remain above the cited share price. Article on analyst downgrades

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.