DraftKings (NASDAQ:DKNG) Price Target Lowered to $31.00 at JPMorgan Chase & Co.

Key Points

• JPMorgan Chase cut its price target on DraftKings to $31 (from $32) while keeping an overweight rating, implying roughly a 30.7% upside from the recent share price.
• Several other major brokers have also trimmed targets (e.g., Citigroup, Truist, BofA, Goldman), but the analyst consensus remains a Moderate Buy with an average target of about $35.94.
• DraftKings traded near $23.71 (market cap ~$11.76B) with a negative PE, and notable insider activity—insiders sold ~549,495 shares in the last 90 days while director Harry Sloan bought 100,000 shares; insiders own roughly 47%.

DraftKings (NASDAQ:DKNG - Get Free Report) had its price objective reduced by investment analysts at JPMorgan Chase & Co. from $32.00 to $31.00 in a note issued to investors on Thursday,Benzinga reports. The brokerage currently has an "overweight" rating on the stock. JPMorgan Chase & Co.'s target price suggests a potential upside of 30.72% from the stock's current price.

A number of other equities analysts also recently commented on the company. Citigroup cut their price objective on DraftKings from $32.00 to $29.00 and set a "buy" rating on the stock in a report on Thursday. Truist Financial cut their price objective on DraftKings from $45.00 to $33.00 and set a "buy" rating on the stock in a report on Tuesday, February 17th. Bank of America cut their target price on shares of DraftKings from $37.50 to $30.00 and set a "neutral" rating on the stock in a research note on Friday, February 13th. The Goldman Sachs Group cut their target price on shares of DraftKings from $54.00 to $31.00 and set a "buy" rating on the stock in a research note on Tuesday, February 17th. Finally, Benchmark reissued a "buy" rating on shares of DraftKings in a research note on Tuesday, March 3rd. Twenty-five analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $35.94.

DraftKings Trading Up 0.3%

NASDAQ:DKNG traded up $0.07 on Thursday, hitting $23.71. 7,267,344 shares of the stock were exchanged, compared to its average volume of 15,033,714. The stock has a fifty day moving average of $23.74 and a 200-day moving average of $29.68. The stock has a market cap of $11.76 billion, a PE ratio of -592.85, a PEG ratio of 0.92 and a beta of 1.68. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 2.91. DraftKings has a fifty-two week low of $20.46 and a fifty-two week high of $48.78.

Insider Buying and Selling

In other DraftKings news, insider R Stanton Dodge sold 52,777 shares of the firm's stock in a transaction dated Tuesday, January 20th. The stock was sold at an average price of $32.01, for a total value of $1,689,391.77. Following the transaction, the insider directly owned 500,000 shares of the company's stock, valued at $16,005,000. This trade represents a 9.55% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Harry Sloan acquired 100,000 shares of the business's stock in a transaction on Tuesday, February 17th. The stock was bought at an average cost of $21.85 per share, for a total transaction of $2,185,000.00. Following the completion of the transaction, the director directly owned 350,219 shares of the company's stock, valued at $7,652,285.15. This trade represents a 39.96% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders sold a total of 549,495 shares of company stock valued at $14,166,700 over the last ninety days. Insiders own 47.18% of the company's stock.

Institutional Trading of DraftKings

A number of hedge funds and other institutional investors have recently modified their holdings of DKNG. Viking Global Investors LP purchased a new stake in shares of DraftKings during the third quarter worth about $561,125,000. Capital World Investors increased its position in shares of DraftKings by 181.4% during the fourth quarter. Capital World Investors now owns 18,626,429 shares of the company's stock worth $641,867,000 after acquiring an additional 12,008,357 shares during the last quarter. Janus Henderson Group PLC increased its position in shares of DraftKings by 50.8% during the fourth quarter. Janus Henderson Group PLC now owns 25,313,909 shares of the company's stock worth $858,893,000 after acquiring an additional 8,524,923 shares during the last quarter. Norges Bank purchased a new stake in shares of DraftKings during the fourth quarter worth about $284,466,000. Finally, AQR Capital Management LLC increased its position in shares of DraftKings by 41.0% during the fourth quarter. AQR Capital Management LLC now owns 16,474,009 shares of the company's stock worth $567,694,000 after acquiring an additional 4,788,337 shares during the last quarter. 37.70% of the stock is owned by hedge funds and other institutional investors.

About DraftKings

DraftKings Inc is a leading digital sports entertainment and gaming company specializing in daily fantasy sports, sports betting and iGaming products. The company provides an integrated platform where users can participate in daily fantasy contests, place wagers on professional sports events, and enjoy a range of online casino-style games. DraftKings' proprietary technology supports real-time odds, live scoring and advanced analytics to enhance the user experience across mobile and desktop applications.

Founded in 2012 by co-founders Jason Robins, Matthew Kalish and Paul Liberman, DraftKings began as a daily fantasy sports provider and rapidly expanded into regulated sports betting following legislative changes in the United States.

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