DraftKings (NASDAQ:DKNG) Price Target Cut to $55.00 by Analysts at Oppenheimer

Key Points

• Oppenheimer has lowered its price target for DraftKings from $60.00 to $55.00, while maintaining an "outperform" rating, indicating a potential upside of 49.64% from the stock's previous closing price.
• DraftKings' stock has seen a 1.7% decline, trading down to $36.75, with analysts recommending a consensus "Moderate Buy" rating and a price target averaging $54.57.
• While 25 analysts rate DraftKings as a Buy, there is some caution reflected by a $33 price objective set by Northland Securities, labeling the stock as "underperform."

DraftKings (NASDAQ:DKNG - Get Free Report) had its target price dropped by equities researchers at Oppenheimer from $60.00 to $55.00 in a research note issued on Wednesday,Benzinga reports. The firm currently has an "outperform" rating on the stock. Oppenheimer's price target would suggest a potential upside of 49.64% from the stock's previous close.

A number of other research firms have also commented on DKNG. Northland Securities reiterated an "under perform" rating and set a $33.00 price objective on shares of DraftKings in a research note on Wednesday. Benchmark upped their price target on shares of DraftKings from $50.00 to $53.00 and gave the company a "buy" rating in a report on Thursday, August 7th. Deutsche Bank Aktiengesellschaft set a $47.00 price objective on shares of DraftKings and gave the stock a "hold" rating in a research note on Friday, August 8th. JPMorgan Chase & Co. began coverage on DraftKings in a report on Monday, June 23rd. They issued an "overweight" rating and a $50.00 price target on the stock. Finally, Morgan Stanley reaffirmed an "overweight" rating and set a $52.00 target price (up from $51.00) on shares of DraftKings in a research report on Friday, July 11th. Twenty-five research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, DraftKings presently has a consensus rating of "Moderate Buy" and a consensus price target of $54.57.

DraftKings Stock Down 1.7%

Shares of NASDAQ DKNG traded down $0.65 on Wednesday, hitting $36.75. The company had a trading volume of 4,900,105 shares, compared to its average volume of 10,183,290. DraftKings has a 12-month low of $29.64 and a 12-month high of $53.61. The company has a quick ratio of 1.34, a current ratio of 1.34 and a debt-to-equity ratio of 1.82. The firm has a market capitalization of $18.25 billion, a P/E ratio of -56.72, a PEG ratio of 1.00 and a beta of 1.73. The business has a 50 day moving average of $44.82 and a two-hundred day moving average of $39.86.

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

Insider Activity

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

Institutional Investors Weigh In On DraftKings

Hedge funds and other institutional investors have recently bought and sold shares of the company. FNY Investment Advisers LLC acquired a new position in shares of DraftKings in the 1st quarter valued at about $26,000. Smallwood Wealth Investment Management LLC purchased a new position in DraftKings in the first quarter worth $27,000. GPS Wealth Strategies Group LLC increased its position in DraftKings by 197.9% in the first quarter. GPS Wealth Strategies Group LLC now owns 849 shares of the company's stock worth $28,000 after buying an additional 564 shares during the last quarter. Bank of Jackson Hole Trust bought a new stake in DraftKings during the 1st quarter valued at $31,000. Finally, MassMutual Private Wealth & Trust FSB boosted its stake in DraftKings by 44.8% during the first quarter. MassMutual Private Wealth & Trust FSB now owns 1,024 shares of the company's stock valued at $34,000 after buying an additional 317 shares during the period. Institutional investors own 37.70% of the company's stock.

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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