Truist Financial Has Lowered Expectations for DraftKings (NASDAQ:DKNG) Stock Price

Key Points

• Truist Financial cut its DraftKings price target from $33 to $30 while keeping a "buy" rating, implying about a 27.7% upside from the current share price.
• Several other brokers have trimmed targets recently (including Goldman Sachs and JPMorgan), but the consensus remains a "Moderate Buy" with an average analyst price target of $35.84.
• Company insiders have been active sellers—most notably Paul Liberman sold 484,417 shares—and insiders sold 496,718 shares last quarter, while insiders still own roughly 47.18% of shares.

DraftKings (NASDAQ:DKNG - Get Free Report) had its price objective lowered by research analysts at Truist Financial from $33.00 to $30.00 in a research report issued to clients and investors on Tuesday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. Truist Financial's target price would suggest a potential upside of 27.72% from the stock's current price.

A number of other research firms have also recently commented on DKNG. JPMorgan Chase & Co. dropped their price target on shares of DraftKings from $32.00 to $31.00 and set an "overweight" rating for the company in a research note on Thursday, April 16th. Deutsche Bank Aktiengesellschaft set a $26.00 price target on shares of DraftKings in a research note on Tuesday, February 17th. The Goldman Sachs Group dropped their price objective on DraftKings from $54.00 to $31.00 and set a "buy" rating on the stock in a research note on Tuesday, February 17th. Zacks Research lowered DraftKings from a "hold" rating to a "strong sell" rating in a research report on Thursday, February 19th. Finally, BTIG Research reissued a "buy" rating and set a $35.00 price target on shares of DraftKings in a research report on Monday, March 23rd. Twenty-five equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $35.84.

DraftKings Trading Up 2.6%

NASDAQ:DKNG opened at $23.49 on Tuesday. The business has a fifty day moving average price of $23.55 and a 200-day moving average price of $29.33. The company has a debt-to-equity ratio of 2.91, a current ratio of 1.03 and a quick ratio of 1.03. DraftKings has a one year low of $20.46 and a one year high of $48.78. The firm has a market capitalization of $11.64 billion, a price-to-earnings ratio of -585.13, a price-to-earnings-growth ratio of 0.92 and a beta of 1.68.

Insiders Place Their Bets

In other DraftKings news, CAO Erik Bradbury sold 7,268 shares of the stock in a transaction dated Thursday, February 19th. The stock was sold at an average price of $22.50, for a total value of $163,530.00. Following the completion of the sale, the chief accounting officer directly owned 36,736 shares in the company, valued at approximately $826,560. This trade represents a 16.52% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Paul Liberman sold 484,417 shares of the firm's stock in a transaction dated Wednesday, March 11th. The stock was sold at an average price of $25.16, for a total value of $12,187,931.72. Following the completion of the sale, the insider directly owned 213,597 shares of the company's stock, valued at approximately $5,374,100.52. This represents a 69.40% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 496,718 shares of company stock valued at $12,477,308. 47.18% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Dagco Inc. acquired a new position in shares of DraftKings in the 4th quarter valued at $26,000. Ameriflex Group Inc. raised its stake in DraftKings by 100.0% in the 3rd quarter. Ameriflex Group Inc. now owns 810 shares of the company's stock worth $30,000 after acquiring an additional 405 shares during the last quarter. Root Financial Partners LLC acquired a new stake in DraftKings during the 3rd quarter worth about $33,000. Asset Dedication LLC purchased a new stake in DraftKings during the 3rd quarter valued at about $37,000. Finally, AlphaQuest LLC acquired a new position in shares of DraftKings in the third quarter valued at about $41,000. Hedge funds and other institutional investors own 37.70% of the company's stock.

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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