DraftKings (NASDAQ:DKNG) Shares Down 4.7% Following Analyst Downgrade

Key Points

• DraftKings' shares experienced a decline of 4.7% after Jefferies Financial Group downgraded their price target from $54.00 to $51.00, while still maintaining a buy rating.
• Approximately 7.27 million shares traded hands, reflecting a 31% decrease from the average daily volume, with the stock last priced at $33.33.
• A total of twenty-six analysts have rated DraftKings with a buy rating, while three analysts provided a sell rating, indicating a mixed outlook on the stock.

DraftKings Inc. (NASDAQ:DKNG - Get Free Report)'s share price dropped 4.7% during trading on Tuesday after Jefferies Financial Group lowered their price target on the stock from $54.00 to $51.00. Jefferies Financial Group currently has a buy rating on the stock. DraftKings traded as low as $33.29 and last traded at $33.33. Approximately 7,270,504 shares traded hands during trading, a decline of 31% from the average daily volume of 10,526,204 shares. The stock had previously closed at $34.98.

A number of other equities research analysts have also recently commented on DKNG. JPMorgan Chase & Co. began coverage on shares of DraftKings in a report on Monday, June 23rd. They issued an "overweight" rating and a $50.00 price target on the stock. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of DraftKings in a report on Saturday, September 27th. Oppenheimer lowered their price target on shares of DraftKings from $60.00 to $55.00 and set an "outperform" rating on the stock in a report on Wednesday, October 1st. Wall Street Zen cut shares of DraftKings from a "buy" rating to a "hold" rating in a report on Friday. Finally, Stifel Nicolaus lowered their price target on shares of DraftKings from $53.00 to $51.00 and set a "buy" rating on the stock in a report on Wednesday, July 16th. Twenty-six equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $53.79.

Insiders Place Their Bets

In related news, Director Jocelyn Moore sold 4,861 shares of DraftKings stock in a transaction that occurred on Wednesday, August 13th. The shares were sold at an average price of $43.21, for a total value of $210,043.81. Following the completion of the transaction, the director directly owned 1,461 shares in the company, valued at approximately $63,129.81. The trade was a 76.89% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Matthew Kalish sold 210,000 shares of DraftKings stock in a transaction that occurred on 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 transaction, the insider owned 4,190,233 shares of the company's stock, valued at $179,760,995.70. This represents a 4.77% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 658,331 shares of company stock worth $29,285,365 in the last three months. Insiders own 51.19% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. FNY Investment Advisers LLC purchased a new position in shares of DraftKings during the 1st quarter valued at $26,000. Smallwood Wealth Investment Management LLC purchased a new position in shares of DraftKings during the 1st quarter valued at $27,000. GPS Wealth Strategies Group LLC grew its position 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 valued at $28,000 after purchasing an additional 564 shares in the last quarter. Bank of Jackson Hole Trust purchased a new position in shares of DraftKings during the 1st quarter valued at $31,000. Finally, TD Private Client Wealth LLC grew its position 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 valued at $34,000 after purchasing an additional 282 shares in the last quarter. 37.70% of the stock is currently owned by hedge funds and other institutional investors.

DraftKings Price Performance

The business's 50-day moving average price is $44.06 and its 200 day moving average price is $39.78. The stock has a market capitalization of $16.52 billion, a PE ratio of -51.32, a price-to-earnings-growth ratio of 0.93 and a beta of 1.99. The company has a debt-to-equity ratio of 1.82, a quick ratio of 1.34 and a current ratio of 1.34.

DraftKings (NASDAQ:DKNG - Get Free Report) last released its quarterly earnings results on Thursday, August 7th. The company reported $0.30 EPS 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 net margin of 5.63% and a negative return on equity of 30.06%. The business's revenue for the quarter was up 36.9% on a year-over-year basis. During the same period in the previous year, the business earned $0.12 EPS. DraftKings has set its FY 2025 guidance at EPS. Research analysts forecast that DraftKings Inc. will post 0.64 earnings per share for the current year.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.