UBS Group Lowers DraftKings (NASDAQ:DKNG) Price Target to $43.00

Key Points

• UBS cut its DraftKings price target from $53 to $43 while keeping a "buy" rating, a target UBS says implies about a 72.7% upside from the stock's previous close.
• DraftKings shares traded at $24.90 (down ~3.7%), with a market cap of $12.28B, a negative PE of -622.5, and a 52‑week range of $21.01–$48.78, below both the 50‑day ($27.88) and 200‑day ($33.15) moving averages.
• Insider activity was mixed: R. Stanton Dodge sold ~52,777 shares while director Harry Sloan bought 100,000 shares, and insiders still collectively own about 47.08% of the company despite recent sales.

DraftKings (NASDAQ:DKNG - Get Free Report) had its price objective cut by analysts at UBS Group from $53.00 to $43.00 in a report issued on Monday,Benzinga reports. The firm presently has a "buy" rating on the stock. UBS Group's price objective points to a potential upside of 72.69% from the stock's previous close.

A number of other research analysts have also weighed in on DKNG. Jefferies Financial Group set a $46.00 target price on DraftKings in a report on Tuesday, March 3rd. Needham & Company LLC reiterated a "buy" rating and set a $35.00 price target on shares of DraftKings in a report on Tuesday, March 3rd. Bank of America lowered their price target on DraftKings from $37.50 to $30.00 and set a "neutral" rating for the company in a research report on Friday, February 13th. Rothschild & Co Redburn set a $35.00 price objective on DraftKings in a research note on Friday, January 30th. Finally, Wells Fargo & Company reaffirmed an "overweight" rating on shares of DraftKings in a report on Tuesday, March 3rd. Twenty-five investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat, DraftKings presently has an average rating of "Moderate Buy" and a consensus price target of $37.09.

DraftKings Stock Down 3.7%

NASDAQ DKNG traded down $0.97 during trading hours on Monday, hitting $24.90. The company's stock had a trading volume of 12,326,004 shares, compared to its average volume of 15,875,491. The company has a market capitalization of $12.28 billion, a PE ratio of -622.50, a price-to-earnings-growth ratio of 1.06 and a beta of 1.67. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 2.91. DraftKings has a 52 week low of $21.01 and a 52 week high of $48.78. The company's 50-day simple moving average is $27.88 and its two-hundred day simple moving average is $33.15.

Insiders Place Their Bets

In related news, insider R Stanton Dodge sold 52,777 shares of DraftKings stock in a transaction on Tuesday, January 20th. The stock was sold at an average price of $32.01, for a total transaction of $1,689,391.77. Following 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 sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Harry Sloan acquired 100,000 shares of the business's stock in a transaction on Tuesday, February 17th. The stock was acquired at an average cost of $21.85 per share, for a total transaction of $2,185,000.00. Following the transaction, the director owned 350,219 shares of the company's stock, valued at approximately $7,652,285.15. The trade was a 39.96% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last three months, insiders sold 547,345 shares of company stock valued at $14,111,660. Insiders own 47.08% of the company's stock.

Institutional Investors Weigh In On DraftKings

Hedge funds have recently made changes to their positions in the business. Dagco Inc. purchased a new position in shares of DraftKings in the 4th quarter worth about $26,000. Ameriflex Group Inc. increased its holdings in DraftKings by 100.0% during the third quarter. Ameriflex Group Inc. now owns 810 shares of the company's stock worth $30,000 after buying an additional 405 shares during the last quarter. Root Financial Partners LLC bought a new stake in DraftKings in the third quarter worth about $33,000. Asset Dedication LLC bought a new stake in DraftKings in the third quarter worth about $37,000. Finally, Montag A & Associates Inc. boosted its stake in DraftKings by 82.5% in the fourth quarter. Montag A & Associates Inc. now owns 1,106 shares of the company's stock valued at $38,000 after acquiring an additional 500 shares during the last quarter. 37.70% of the stock is currently owned by institutional investors.

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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