DraftKings (NASDAQ:DKNG) Given New $51.00 Price Target at Jefferies Financial Group

Key Points

• Jefferies Financial Group has lowered its price target on DraftKings from $54.00 to $51.00, maintaining a "buy" rating, suggesting a potential upside of 44.19% from the previous close.
• Multiple analysts have varied views on DraftKings, with Truist Financial raising their price target to $55.00, while Northland Capital downgraded the stock from "strong-buy" to "strong sell."
• DraftKings reported a strong fiscal quarter, achieving a revenue of $1.51 billion, surpassing estimates, and a significant year-over-year revenue growth of 36.9%.

DraftKings (NASDAQ:DKNG - Get Free Report) had its price target cut by equities research analysts at Jefferies Financial Group from $54.00 to $51.00 in a note issued to investors on Monday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. Jefferies Financial Group's price target would suggest a potential upside of 44.19% from the stock's previous close.

Several other research firms have also weighed in on DKNG. Truist Financial lifted their price objective on DraftKings from $50.00 to $55.00 and gave the stock a "buy" rating in a research report on Wednesday, July 16th. JMP Securities dropped their target price on shares of DraftKings from $54.00 to $51.00 and set a "market outperform" rating on the stock in a research report on Wednesday. JPMorgan Chase & Co. started coverage on DraftKings in a report on Monday, June 23rd. They set an "overweight" rating and a $50.00 price objective for the company. Stifel Nicolaus decreased their price target on shares of DraftKings from $53.00 to $51.00 and set a "buy" rating for the company in a research note on Wednesday, July 16th. Finally, Northland Capmk downgraded DraftKings from a "strong-buy" rating to a "strong sell" rating in a research note on Wednesday, October 1st. Twenty-six investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, DraftKings presently has a consensus rating of "Moderate Buy" and a consensus target price of $53.79.

DraftKings Stock Up 1.4%

Shares of NASDAQ:DKNG opened at $35.37 on Monday. The firm has a market cap of $17.56 billion, a P/E ratio of -54.42, a P/E/G ratio of 0.93 and a beta of 1.99. DraftKings has a 12-month low of $29.64 and a 12-month high of $53.61. The business has a fifty day simple moving average of $44.25 and a 200 day simple moving average of $39.81. The company has a quick ratio of 1.34, a current ratio of 1.34 and a debt-to-equity ratio of 1.82.

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

Insider Activity

In other news, insider Matthew Kalish sold 210,000 shares of the business's stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $42.90, for a total value of $9,009,000.00. Following the completion of the sale, the insider directly owned 4,190,233 shares in the company, valued at approximately $179,760,995.70. The trade was a 4.77% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Ryan R. Moore sold 76,390 shares of DraftKings stock in a transaction on Thursday, August 21st. The stock was sold at an average price of $45.92, for a total transaction of $3,507,828.80. Following the completion of the transaction, the director owned 402 shares in the company, valued at approximately $18,459.84. The trade was a 99.48% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 658,331 shares of company stock valued at $29,285,365. Insiders own 47.08% of the company's stock.

Hedge Funds Weigh In On DraftKings

A number of large investors have recently bought and sold shares of the stock. FNY Investment Advisers LLC purchased a new stake in shares of DraftKings during the first quarter valued at approximately $26,000. Smallwood Wealth Investment Management LLC bought a new stake in DraftKings in the 1st quarter worth $27,000. GPS Wealth Strategies Group LLC increased its position in shares of DraftKings by 197.9% in the first quarter. GPS Wealth Strategies Group LLC now owns 849 shares of the company's stock valued at $28,000 after acquiring an additional 564 shares during the period. Bank of Jackson Hole Trust purchased a new position in shares of DraftKings in the first quarter valued at about $31,000. Finally, TD Private Client Wealth LLC boosted its holdings in shares of DraftKings by 54.4% during the second 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. 37.70% of the stock is owned by hedge funds and other institutional investors.

DraftKings Company Profile

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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