Truist Financial Has Lowered Expectations for DraftKings (NASDAQ:DKNG) Stock Price

Key Points

• Truist cut DraftKings’ price target to $22 from $26 but maintained a Buy rating; the new target implies 18.85% upside from the prior close.
• DraftKings’ latest quarter fell short of expectations, reporting a loss of $0.53 per share versus a forecast loss of $0.41, and revenue of $1.33 billion versus $1.39 billion expected. Revenue nevertheless grew 16.2% year over year.
• Analyst sentiment remains broadly positive: MarketBeat reported a Moderate Buy consensus rating and an average price target of $30.26, despite some recent downgrades and lower targets.

DraftKings (NASDAQ:DKNG - Get Free Report) had its price target cut by stock analysts at Truist Financial from $26.00 to $22.00 in a research note issued on Monday, Benzinga reports. The brokerage presently has a "buy" rating on the stock. Truist Financial's price target would suggest a potential upside of 18.85% from the stock's previous close.

Several other research firms also recently weighed in on DKNG. Moffett Nathanson reissued a "neutral" rating and set a $22.00 price target on shares of DraftKings in a research report on Thursday, October 22nd. Zacks Research lowered DraftKings from a "hold" rating to a "strong sell" rating in a research note on Tuesday, October 13th. Weiss Ratings downgraded shares of DraftKings from a "sell (d)" rating to a "sell (e+)" rating in a report on Friday, August 21st. Bank of America restated a "buy" rating on shares of DraftKings in a research note on Friday. Finally, Northland Securities set a $28.00 target price on DraftKings in a research report on Monday, August 10th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating, nine have given a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $30.26.

DraftKings Stock Performance

Shares of DraftKings stock opened at $18.51 on Monday. The company has a debt-to-equity ratio of 3.22, a quick ratio of 1.02 and a current ratio of 1.02. DraftKings has a 1 year low of $16.55 and a 1 year high of $36.98. The company's fifty day moving average is $21.51 and its two-hundred day moving average is $24.06. The company has a market capitalization of $9.19 billion, a P/E ratio of -23.14, a PEG ratio of 2.43 and a beta of 1.65.

DraftKings (NASDAQ:DKNG - Get Free Report) last posted its quarterly earnings data 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 return on equity of 36.21% and a negative net margin of 5.91%. The company had revenue of $1.33 billion for the quarter, compared to analyst estimates of $1.39 billion. During the same period in the previous year, the business posted ($0.26) earnings per share. The firm's revenue was up 16.2% compared to the same quarter last year. Analysts forecast that DraftKings will post 0.31 earnings per share 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 that occurred on Wednesday, August 19th. The stock was sold at an average price of $24.05, for a total transaction of $258,753.95. Following the completion of the sale, the director owned 1,881 shares of the company's stock, valued at $45,238.05. This represents a 85.12% decrease in their ownership of the stock. 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. Company 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. Ibex Investors LLC grew its holdings in DraftKings by 92.3% during the third quarter. Ibex Investors LLC now owns 125,000 shares of the company's stock valued at $2,375,000 after purchasing an additional 60,000 shares during the period. Machina Capital S.A.S. purchased a new stake in shares of DraftKings during the 3rd quarter valued at about $224,000. Illinois Municipal Retirement Fund boosted its holdings in shares of DraftKings by 2.2% in the 3rd quarter. Illinois Municipal Retirement Fund now owns 124,757 shares of the company's stock worth $2,370,000 after purchasing an additional 2,684 shares during the period. Lido Advisors LLC increased its position in DraftKings by 6.8% during the third quarter. Lido Advisors LLC now owns 19,677 shares of the company's stock valued at $374,000 after acquiring an additional 1,258 shares during the last quarter. Finally, Fulcrum Asset Management LLP lifted its stake in DraftKings by 76.0% in the third quarter. Fulcrum Asset Management LLP now owns 23,906 shares of the company's stock worth $468,000 after purchasing an additional 10,321 shares during the last quarter. 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: Sanford C. Bernstein cut its price target to $22 from $27 but maintained an outperform rating. BTIG lowered its target to $23 from $26 while keeping a buy rating; both targets remain above the cited $18.51 share price. Ticker Report analyst update
• Neutral Sentiment: A report highlighted rising hopes for sports betting in Texas as prediction markets face scrutiny. That could represent a longer-term opportunity, but the coverage does not point to an immediate policy change. DraftKings Texas betting outlook
• Negative Sentiment: JPMorgan downgraded DraftKings from overweight to neutral, setting a $21 target. Reports also say UBS and Stifel downgraded the stock, adding to investor concern after its recent sharp decline. Report on analyst downgrades
• Negative Sentiment: The main pressure is DraftKings’ disappointing third-quarter results and lowered fiscal 2026 guidance, with weak 2027 expectations also cited. The earnings miss and outlook cuts have led analysts to reduce forecasts and price targets, reinforcing concerns about growth and execution. Analyst forecasts after DraftKings Q3 results

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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