Oppenheimer Issues Pessimistic Forecast for DraftKings (NASDAQ:DKNG) Stock Price

Key Points

• Oppenheimer cut its price target on DraftKings from $50 to $35 but kept an "outperform" rating, implying roughly a 60.85% upside from the current share price.
• The wider analyst picture is a Moderate Buy: 23 Buys, seven Holds and one Sell, with an average target of $42.59 despite varied firm-level targets.
• DraftKings is trading near its 12‑month low (opened at $21.76), has a market cap of about $10.8B, a negative P/E (‑544) and high leverage (debt/equity 2.51), while insiders own 47.08% after a recent sale of 52,777 shares.

DraftKings (NASDAQ:DKNG - Get Free Report) had its price objective decreased by Oppenheimer from $50.00 to $35.00 in a note issued to investors on Tuesday,Benzinga reports. The brokerage currently has an "outperform" rating on the stock. Oppenheimer's price target would suggest a potential upside of 60.85% from the company's current price.

Several other analysts have also recently commented on the company. Weiss Ratings reiterated a "sell (d-)" rating on shares of DraftKings in a research report on Wednesday, January 21st. Northland Securities raised shares of DraftKings from an "under perform" rating to a "market perform" rating in a research note on Monday, November 10th. BMO Capital Markets reaffirmed an "outperform" rating and set a $42.00 target price on shares of DraftKings in a report on Friday. Stifel Nicolaus decreased their price target on shares of DraftKings from $46.00 to $44.00 and set a "buy" rating on the stock in a research note on Friday, January 30th. Finally, Morgan Stanley boosted their price target on shares of DraftKings from $50.00 to $53.00 and gave the stock an "overweight" rating in a research report on Friday, January 16th. Twenty-three investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $42.59.

DraftKings Price Performance

NASDAQ:DKNG opened at $21.76 on Tuesday. The stock has a 50 day moving average of $31.94 and a two-hundred day moving average of $35.97. DraftKings has a 12 month low of $21.01 and a 12 month high of $53.61. The firm has a market cap of $10.83 billion, a P/E ratio of -544.00, a price-to-earnings-growth ratio of 0.43 and a beta of 1.67. The company has a current ratio of 1.10, a quick ratio of 1.09 and a debt-to-equity ratio of 2.51.

Insider Buying and Selling at DraftKings

In related news, insider R Stanton Dodge sold 52,777 shares of the firm's stock in a transaction dated Tuesday, January 20th. The shares were sold at an average price of $32.01, for a total transaction of $1,689,391.77. Following the completion of the sale, the insider directly owned 500,000 shares in the company, valued at approximately $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 Securities & Exchange Commission, which is accessible through this link. Insiders own 47.08% of the company's stock.

Institutional Trading of DraftKings

Several hedge funds have recently made changes to their positions in DKNG. Dagco Inc. purchased a new stake in shares of DraftKings during the 4th quarter valued at approximately $26,000. Ameriflex Group Inc. lifted its stake in shares of DraftKings by 100.0% in the 3rd quarter. Ameriflex Group Inc. now owns 810 shares of the company's stock valued at $30,000 after purchasing an additional 405 shares during the last quarter. Root Financial Partners LLC acquired a new position in shares of DraftKings in the 3rd quarter valued at $33,000. Asset Dedication LLC purchased a new position in shares of DraftKings during the 3rd quarter worth $37,000. Finally, Atlantic Union Bankshares Corp acquired a new stake in shares of DraftKings during the 2nd quarter worth about $45,000. Hedge funds and other institutional investors own 37.70% of the company's stock.

DraftKings Company Profile

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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