Citigroup Lowers DraftKings (NASDAQ:DKNG) Price Target to $56.00

Key Points

• Citigroup has lowered its price target for DraftKings from $58.00 to $56.00 while maintaining a "buy" rating, indicating a potential upside of 53.83% from the current stock price.
• Shares of DraftKings recently traded down by 2.7% to $36.40, with a market cap of $18.07 billion and a 52-week range between $29.64 and $53.61.
• DraftKings recently reported a revenue of $1.51 billion for the quarter, exceeding analysts' expectations, with earnings per share of $0.30, surpassing estimates by $0.14.

DraftKings (NASDAQ:DKNG - Get Free Report) had its price target cut by equities research analysts at Citigroup from $58.00 to $56.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The firm presently has a "buy" rating on the stock. Citigroup's price objective would indicate a potential upside of 53.83% from the stock's current price.

Other analysts also recently issued reports about the company. Stifel Nicolaus lowered their target price on DraftKings from $53.00 to $51.00 and set a "buy" rating for the company in a research note on Wednesday, July 16th. Oppenheimer reduced their price target on shares of DraftKings from $60.00 to $55.00 and set an "outperform" rating on the stock in a research report on Wednesday. Northland Securities reaffirmed an "under perform" rating and set a $33.00 price target on shares of DraftKings in a research report on Wednesday. Jefferies Financial Group set a $54.00 target price on shares of DraftKings in a report on Thursday, August 21st. Finally, UBS Group cut their target price on shares of DraftKings from $58.00 to $56.00 and set a "buy" rating on the stock in a report on Wednesday, September 24th. Twenty-six equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $54.50.

DraftKings Trading Down 2.7%

Shares of DraftKings stock traded down $1.00 during trading hours on Wednesday, reaching $36.40. 11,561,236 shares of the company's stock were exchanged, compared to its average volume of 10,224,378. DraftKings has a 52-week low of $29.64 and a 52-week high of $53.61. The firm has a market capitalization of $18.07 billion, a price-to-earnings ratio of -56.04, a price-to-earnings-growth ratio of 1.00 and a beta of 1.73. The company has a fifty day moving average of $44.82 and a 200-day moving average of $39.86. The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 1.82.

DraftKings (NASDAQ:DKNG - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. The company reported $0.30 EPS for the quarter, topping analysts' consensus estimates of $0.16 by $0.14. The business had revenue of $1.51 billion during the quarter, compared to the consensus estimate of $1.39 billion. DraftKings had a negative return on equity of 30.06% and a negative net margin of 5.63%.The business's revenue for the quarter was up 36.9% on a year-over-year basis. During the same period in the prior year, the firm posted $0.12 EPS. DraftKings has set its FY 2025 guidance at EPS. Sell-side analysts forecast that DraftKings will post 0.64 EPS for the current fiscal year.

Insider Transactions at DraftKings

In related news, insider R Stanton Dodge sold 105,554 shares of the firm's stock in a transaction that occurred on Tuesday, August 5th. The shares were sold at an average price of $44.60, for a total value of $4,707,708.40. Following the completion of the transaction, the insider owned 500,000 shares of the company's stock, valued at approximately $22,300,000. This trade represents a 17.43% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Jocelyn Moore sold 4,861 shares of DraftKings stock in a transaction on Wednesday, August 13th. The shares were sold at an average price of $43.21, for a total transaction of $210,043.81. Following the completion of the sale, the director directly owned 1,461 shares of the company's stock, valued at approximately $63,129.81. The trade was a 76.89% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 658,331 shares of company stock valued at $29,285,365 in the last 90 days. 47.08% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. FNY Investment Advisers LLC bought a new position in DraftKings in the 1st quarter worth $26,000. TD Private Client Wealth LLC increased its holdings in shares of DraftKings by 54.4% during the 2nd quarter. TD Private Client Wealth LLC now owns 800 shares of the company's stock worth $34,000 after purchasing an additional 282 shares during the period. Smallwood Wealth Investment Management LLC bought a new position in shares of DraftKings during the 1st quarter worth about $27,000. GPS Wealth Strategies Group LLC increased its holdings in shares of DraftKings by 197.9% during the 1st quarter. GPS Wealth Strategies Group LLC now owns 849 shares of the company's stock worth $28,000 after purchasing an additional 564 shares during the period. Finally, Bank of Jackson Hole Trust bought a new position in shares of DraftKings during the 1st quarter worth about $31,000. Institutional investors own 37.70% of the company's stock.

About DraftKings

DraftKings Inc operates as a digital sports entertainment and gaming company in the United States and internationally. It provides online sports betting and casino, daily fantasy sports, media, and other consumer products, as well as retails sportsbooks. The company also engages in the design and development of sports betting and casino gaming software for online and retail sportsbooks, and iGaming operators.

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