DraftKings Inc. $DKNG Stock: Sumitomo Mitsui Trust Group Inc. Reduces Stake

Key Points

• Sumitomo Mitsui Trust Group cut its DraftKings stake by 20% in the third quarter, selling 375,747 shares and retaining 1,500,947 shares valued at about $28.5 million.
• DraftKings’ third-quarter revenue rose 16.2% year over year to about $1.33 billion, but missed expectations; its loss per share was also wider than analysts had forecast.
• The company lowered its 2026 revenue outlook to $6.35 billion–$6.55 billion. Analysts’ average rating remains “Moderate Buy,” with an average price target of $32.79.

Sumitomo Mitsui Trust Group Inc. lessened its stake in shares of DraftKings Inc. (NASDAQ:DKNG - Free Report) by 20.0% in the 3rd quarter, according to its most recent disclosure with the SEC. The institutional investor owned 1,500,947 shares of the company's stock after selling 375,747 shares during the period. Sumitomo Mitsui Trust Group Inc. owned about 0.30% of DraftKings worth $28,518,000 at the end of the most recent quarter.

A number of other large investors have also recently modified their holdings of DKNG. CoreCap Advisors LLC increased its holdings in DraftKings by 336.5% during the 2nd quarter. CoreCap Advisors LLC now owns 1,148 shares of the company's stock worth $29,000 after purchasing an additional 885 shares during the period. Basecamp Wealth Advisors LLC raised its position in DraftKings by 3,547.1% during the 1st quarter. Basecamp Wealth Advisors LLC now owns 1,240 shares of the company's stock valued at $27,000 after purchasing an additional 1,206 shares in the last quarter. Ascentis Independent Advisors bought a new stake in DraftKings during the 1st quarter valued at $27,000. Mirae Asset Global Investments Co. Ltd. purchased a new stake in shares of DraftKings in the 3rd quarter worth $48,000. Finally, CX Institutional lifted its holdings in shares of DraftKings by 213.8% in the 3rd quarter. CX Institutional now owns 3,876 shares of the company's stock worth $74,000 after buying an additional 2,641 shares during the period. Hedge funds and other institutional investors own 37.70% of the company's stock.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on the company. Bank of America raised DraftKings from a "neutral" rating to a "buy" rating and set a $27.00 price target on the stock in a research report on Monday, October 5th. BTIG Research lifted their price objective on DraftKings from $25.00 to $26.00 and gave the company a "buy" rating in a report on Thursday, October 29th. Stifel Nicolaus decreased their price objective on DraftKings from $36.00 to $32.00 and set a "buy" rating for the company in a report on Monday, October 26th. Zacks Research lowered shares of DraftKings from a "hold" rating to a "strong sell" rating in a research note on Tuesday, October 13th. Finally, Needham & Company LLC dropped their target price on shares of DraftKings from $35.00 to $30.00 and set a "buy" rating on the stock in a report on Monday. One investment analyst has rated the stock with a Strong Buy rating, thirty have given a Buy rating, six have assigned a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $32.79.

DraftKings News Summary

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: DraftKings said its prediction-markets business could generate as much as $750 million in revenue in 2027, presenting a potential growth avenue beyond traditional sports betting. That opportunity remains prospective and may depend on regulatory developments. Article: DraftKings Stock Dives on Q3 Miss, Lower Guidance
• Positive Sentiment: Third-quarter revenue increased about 16% year over year to $1.329 billion, showing continued top-line growth despite missing analyst expectations. Article: DraftKings Q3 Financials
• Negative Sentiment: The company cut its 2026 revenue forecast to $6.35 billion–$6.55 billion from $6.5 billion–$6.9 billion, citing in part increased investment in prediction markets. The lower outlook signals weaker near-term expectations and added spending. Article: DraftKings Cuts Outlook as It Pours More Money Into Prediction Markets
• Negative Sentiment: DraftKings reported a quarterly loss that was worse than analysts expected. Its revenue also fell short of consensus, adding to concerns that growth is not yet translating into improved profitability. Article: DraftKings Reports Q3 Loss, Misses Revenue Estimates

Insider Buying and Selling at DraftKings

In related news, Director Jocelyn Moore sold 10,759 shares of the firm's stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $24.05, for a total transaction of $258,753.95. Following the sale, the director owned 1,881 shares of the company's stock, valued at $45,238.05. This trade represents a 85.12% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 47.18% of the stock is owned by company insiders.

DraftKings Stock Performance

DraftKings stock opened at $23.52 on Friday. The business has a fifty day moving average of $21.62 and a two-hundred day moving average of $24.13. The company has a debt-to-equity ratio of 3.22, a quick ratio of 1.02 and a current ratio of 1.02. DraftKings Inc. has a twelve month low of $18.35 and a twelve month high of $36.98.

DraftKings (NASDAQ:DKNG - Get Free Report) last announced its earnings results on Thursday, November 5th. The company reported ($0.53) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.41) by ($0.12). DraftKings had a negative net margin of 2.68% and a negative return on equity of 11.26%. The company had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.39 billion. During the same period last year, the business posted ($0.26) EPS. The firm's revenue was up 16.2% compared to the same quarter last year. On average, research analysts predict that DraftKings Inc. will post 0.31 EPS for the current fiscal year.

DraftKings Profile

DraftKings Inc is a digital sports entertainment and gaming company that operates online and mobile platforms for sports betting, casino gaming and daily fantasy sports. Its offerings include the DraftKings Sportsbook, DraftKings Casino and daily fantasy contests covering a range of professional and collegiate sports.

The company also provides related entertainment and media content through DraftKings Network, along with free-to-play games, promotions and other interactive products designed to complement its sports and gaming platforms.

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