DraftKings Inc. (NASDAQ:DKNG) Stock Rated "Moderate Buy" by Sell-Side Analysts

Key Points

• Analysts maintain a broadly positive view: DraftKings has a consensus “Moderate Buy” rating from 41 analysts, with 30 buys and one strong buy. The average 12-month price target is $34.14, although several firms recently lowered their targets.
• Recent performance remains challenging: Shares opened at $19.35, near their 12-month low of $18.55. DraftKings beat quarterly earnings expectations with $0.09 in EPS versus $0.02 expected, but revenue fell short and declined 4.6% year over year.
• Prediction-market competition is a key risk and opportunity: DraftKings’ DKeX expansion could improve fees, liquidity and profitability, while partnerships such as NHL on Prime offer growth potential. However, competition from Kalshi and concerns about slowing growth are weighing on investor sentiment.

DraftKings Inc. (NASDAQ:DKNG - Get Free Report) has been given a consensus rating of "Moderate Buy" by the forty-one ratings firms that are covering the company, MarketBeat Ratings reports. Two analysts have rated the stock with a sell recommendation, eight have assigned a hold recommendation, thirty have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1-year price objective among analysts that have issued ratings on the stock in the last year is $34.14.

A number of equities analysts recently issued reports on DKNG shares. Citizens Jmp dropped their target price 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. Needham & Company LLC restated a "buy" rating and issued a $35.00 price target on shares of DraftKings in a research report on Friday, September 18th. Susquehanna dropped their price objective on shares of DraftKings from $32.00 to $31.00 and set a "positive" rating on the stock in a report on Wednesday, July 1st. UBS Group cut their price objective on shares of DraftKings from $49.00 to $48.00 and set a "buy" rating for the company in a research report on Friday, September 18th. Finally, JPMorgan Chase & Co. cut their price objective on shares of DraftKings from $34.00 to $33.00 and set an "overweight" rating for the company in a research report on Monday, August 10th.

DraftKings Stock Performance

DKNG stock opened at $19.35 on Friday. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 3.22. The company has a market capitalization of $9.61 billion, a price-to-earnings ratio of -50.92, a P/E/G ratio of 1.92 and a beta of 1.61. DraftKings has a 12 month low of $18.55 and a 12 month high of $36.98. The firm has a 50 day moving average of $23.65 and a two-hundred day moving average of $24.28.

DraftKings (NASDAQ:DKNG - Get Free Report) last announced its quarterly earnings results on Friday, August 7th. The company reported $0.09 earnings per share for the quarter, topping analysts' consensus estimates of $0.02 by $0.07. DraftKings had a negative return on equity of 11.26% and a negative net margin of 2.68%.The company had revenue of $1.44 billion during the quarter, compared to analysts' expectations of $1.51 billion. During the same quarter in the previous year, the firm earned $0.30 earnings per share. The business's quarterly revenue was down 4.6% compared to the same quarter last year. As a group, equities analysts anticipate that DraftKings will post 0.4 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Jocelyn Moore sold 10,759 shares of the business's stock in a transaction on Wednesday, August 19th. The stock was 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 of the company's stock, valued at $45,238.05. The trade was a 85.12% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 47.18% of the company's stock.

Institutional Trading of DraftKings

Hedge funds and other institutional investors have recently made changes to their positions in the business. QRG Capital Management Inc. raised its position in shares of DraftKings by 30.6% during the second quarter. QRG Capital Management Inc. now owns 65,476 shares of the company's stock worth $1,654,000 after acquiring an additional 15,358 shares during the last quarter. Envestnet Portfolio Solutions Inc. boosted its holdings in DraftKings by 9.0% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 13,744 shares of the company's stock valued at $347,000 after acquiring an additional 1,139 shares during the last quarter. RFG Advisory LLC boosted its holdings in DraftKings by 14.2% in the second quarter. RFG Advisory LLC now owns 47,834 shares of the company's stock valued at $1,208,000 after acquiring an additional 5,930 shares during the last quarter. NewEdge Advisors LLC increased its position in DraftKings by 50.4% in the second quarter. NewEdge Advisors LLC now owns 45,486 shares of the company's stock worth $1,149,000 after purchasing an additional 15,238 shares during the period. Finally, IFP Advisors Inc increased its position in DraftKings by 26.8% in the second quarter. IFP Advisors Inc now owns 13,027 shares of the company's stock worth $329,000 after purchasing an additional 2,750 shares during the period. 37.70% of the stock is currently owned by institutional investors and hedge funds.

DraftKings News Roundup

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: DraftKings is moving prediction-market volume to its DKeX platform, allowing it to retain more fees, build liquidity and potentially increase profit per customer through 2027. The strategy could create higher-margin revenue if DKeX gains scale. Can DKNG's DKeX Rollout Lift Profit Per Customer Into 2027?
• Positive Sentiment: BTIG Research maintained a “buy” rating and sees substantial potential upside from current levels, even after reducing its DraftKings price target from $30 to $25. The continued bullish rating suggests analysts view the recent selloff as excessive. BTIG Research DraftKings Price Target
• Neutral Sentiment: DraftKings’ prediction-market expansion and NHL on Prime partnership provide potential growth catalysts, but investors appear focused more heavily on whether the company can convert new activity into sustainable profits. DraftKings Stock Drops as Prediction Market Fears Overshadow NHL Deal
• Negative Sentiment: Prediction-market competition is the main bearish catalyst. Rival Kalshi’s reported valuation, market leadership and ability to attract trading activity have raised concerns that DraftKings could lose customers or face higher spending to defend share. DraftKings and FanDuel Parent Reach Multiyear Lows as Kalshi Grows
• Negative Sentiment: The recent decline to a one-year low reflects broader concerns about slowing growth, elevated valuation risk and the possibility that future expansion will decelerate. Although Wall Street remains broadly constructive, the reduced price target indicates analysts are becoming more cautious. DraftKings Hits New One-Year Low

DraftKings Company Profile

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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