DraftKings (NASDAQ:DKNG) Reaches New 1-Year Low on Analyst Downgrade

DraftKings Inc. (NASDAQ:DKNG) shares reached a new 52-week low during mid-day trading on Friday after Benchmark lowered their price target on the stock from $37.00 to $29.00. Benchmark currently has a buy rating on the stock. DraftKings traded as low as $21.01 and last traded at $22.1860, with a volume of 20782520 shares trading hands. The stock had previously closed at $25.16.

A number of other research firms also recently weighed in on DKNG. BMO Capital Markets reaffirmed an “outperform” rating and set a $42.00 price target on shares of DraftKings in a research note on Friday. Susquehanna set a $44.00 price objective on DraftKings in a report on Tuesday, January 27th. Mizuho cut their price objective on shares of DraftKings from $54.00 to $46.00 and set an “outperform” rating on the stock in a research report on Thursday, November 13th. BTIG Research lifted their target price on shares of DraftKings from $42.00 to $45.00 and gave the company a “buy” rating in a research note on Friday, December 5th. Finally, Barclays dropped their price target on shares of DraftKings from $54.00 to $40.00 and set an “overweight” rating on the stock in a research note on Monday, November 10th. Twenty-three analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $44.41.

Insider Transactions at DraftKings

In other DraftKings news, insider R Stanton Dodge sold 52,777 shares of the stock in a transaction that occurred 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 transaction, the insider owned 500,000 shares in the company, valued at $16,005,000. This trade represents a 9.55% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. 51.19% of the stock is owned by insiders.

Key DraftKings News

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: Revenue and profitability progress — DraftKings reported 43% year‑over‑year revenue growth and said it delivered record revenue and adjusted EBITDA, highlighting continuing top‑line momentum and improving margins. DraftKings Reports Fourth Quarter Revenue Growth of 43%
• Positive Sentiment: Revenue slightly ahead of estimates — Q4 revenue came in at $1.99B versus ~$1.96B consensus, reinforcing the growth story despite other weaknesses. DraftKings Press Release / Slide Deck
• Neutral Sentiment: Street commentary and previews highlighted mixed expectations into the print; several outlets ran pre‑earnings pieces noting volatility heading into results. Benzinga
• Negative Sentiment: EPS miss — DraftKings reported $0.36 EPS for Q4, missing consensus (~$0.45), which disappointed investors expecting a stronger beat. DraftKings (DKNG) Misses Q4 Earnings and Revenue Estimates
• Negative Sentiment: Softer FY‑2026 guidance — Management set FY‑2026 revenue guidance of roughly $6.5B–$6.9B versus a ~ $7.3B consensus, signaling slower near‑term growth than the Street expected. DraftKings Press Release / Slide Deck
• Negative Sentiment: Analyst target cuts — Benchmark lowered its target to $29 (still a Buy) and Bank of America cut to $30 and moved to Neutral, removing some prior upside for the stock. Benzinga
• Neutral Sentiment: Short‑interest entries in feeds look noisy/incorrect (reported zeros); no clear actionable signal from short‑data in the releases provided.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Dagco Inc. bought a new position in shares of DraftKings in the fourth quarter worth about $26,000. Ameriflex Group Inc. increased its position 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 buying an additional 405 shares during the period. Root Financial Partners LLC acquired a new position in shares of DraftKings during the third quarter worth approximately $33,000. Asset Dedication LLC acquired a new position in shares of DraftKings during the third quarter worth approximately $37,000. Finally, Montag A & Associates Inc. boosted its position in shares of 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 period. 37.70% of the stock is currently owned by institutional investors and hedge funds.

DraftKings Stock Performance

The firm’s 50 day moving average price is $32.46 and its 200-day moving average price is $36.41. The firm has a market cap of $10.98 billion, a price-to-earnings ratio of -38.72, a P/E/G ratio of 0.52 and a beta of 1.67. The company has a debt-to-equity ratio of 2.51, a current ratio of 1.10 and a quick ratio of 1.09.

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.