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Truist Financial Cuts DraftKings (NASDAQ:DKNG) Price Target to $50.00

DraftKings logo with Consumer Discretionary background

Key Points

  • Truist Financial has lowered DraftKings' price target from $55.00 to $50.00, while maintaining a "buy" rating, indicating a potential upside of 49.68% from its previous close.
  • The company has seen varied ratings from several analysts, with a consensus of 27 buy ratings, 1 hold, and 3 sell ratings, leading to a current average target price of $52.83.
  • DraftKings reported a quarterly earnings beat with $1.51 billion in revenue and $0.30 EPS, exceeding estimates and reflecting a 36.9% year-over-year growth.
  • Five stocks to consider instead of DraftKings.

DraftKings (NASDAQ:DKNG - Get Free Report) had its price target lowered by research analysts at Truist Financial from $55.00 to $50.00 in a research report issued on Tuesday,Benzinga reports. The firm currently has a "buy" rating on the stock. Truist Financial's price objective suggests a potential upside of 49.68% from the stock's previous close.

DKNG has been the topic of several other research reports. Deutsche Bank Aktiengesellschaft set a $47.00 price objective on shares of DraftKings and gave the stock a "hold" rating in a report on Friday, August 8th. UBS Group lowered their price target on DraftKings from $58.00 to $56.00 and set a "buy" rating on the stock in a research note on Wednesday, September 24th. Susquehanna reduced their price objective on DraftKings from $64.00 to $59.00 and set a "positive" rating for the company in a research report on Tuesday, October 14th. Northland Securities set a $30.00 price objective on DraftKings in a research report on Monday, October 13th. Finally, BTIG Research reduced their target price on DraftKings from $53.00 to $45.00 and set a "buy" rating for the company in a research report on Thursday, October 2nd. Twenty-seven research analysts have rated the stock with a Buy rating, one has given a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $52.83.

Get Our Latest Stock Analysis on DraftKings

DraftKings Stock Performance

NASDAQ DKNG traded down $0.20 during trading on Tuesday, hitting $33.41. The company's stock had a trading volume of 3,426,016 shares, compared to its average volume of 10,968,257. DraftKings has a 52 week low of $29.64 and a 52 week high of $53.61. The firm has a market cap of $16.58 billion, a P/E ratio of -51.43, a price-to-earnings-growth ratio of 0.85 and a beta of 1.99. The firm has a 50 day moving average price of $42.00 and a 200 day moving average price of $39.69. The company has a quick ratio of 1.34, a current ratio of 1.34 and a debt-to-equity ratio of 1.82.

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

Insider Activity at DraftKings

In other news, Director Jocelyn Moore sold 4,861 shares of the business's stock in a transaction that occurred on Wednesday, August 13th. The stock was sold at an average price of $43.21, for a total value of $210,043.81. Following the transaction, the director directly owned 1,461 shares of the company's stock, valued at $63,129.81. The trade was a 76.89% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Alan Wayne Ellingson sold 44,693 shares of the business's stock in a transaction on Tuesday, August 19th. The stock was sold at an average price of $44.90, for a total value of $2,006,715.70. Following the completion of the transaction, the chief financial officer directly owned 128,131 shares in the company, valued at approximately $5,753,081.90. This represents a 25.86% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 552,777 shares of company stock valued at $24,690,599. Insiders own 47.08% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of DKNG. Smallwood Wealth Investment Management LLC bought a new position in DraftKings in the 1st quarter valued at $27,000. Bank of Jackson Hole Trust bought a new stake in shares of DraftKings during the first quarter worth approximately $31,000. TD Private Client Wealth LLC grew its holdings in DraftKings by 54.4% during the 2nd quarter. TD Private Client Wealth LLC now owns 800 shares of the company's stock worth $34,000 after acquiring an additional 282 shares during the period. Summit Securities Group LLC raised its position in shares of DraftKings by 349.1% during the 1st quarter. Summit Securities Group LLC now owns 1,042 shares of the company's stock valued at $35,000 after acquiring an additional 810 shares during the last quarter. Finally, Atlantic Union Bankshares Corp acquired a new position in shares of DraftKings in the 2nd quarter valued at $45,000. Institutional investors own 37.70% of the company's stock.

DraftKings Company Profile

(Get Free Report)

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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Analyst Recommendations for DraftKings (NASDAQ:DKNG)

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