UBS Group Cuts DraftKings (NASDAQ:DKNG) Price Target to $48.00

DraftKings (NASDAQ:DKNG) had its price target lowered by UBS Group from $49.00 to $48.00 in a report released on Friday morning, Marketbeat reports. The firm currently has a buy rating on the stock.

Other research analysts have also issued reports about the stock. Benchmark boosted their price objective on shares of DraftKings from $29.00 to $30.00 and gave the stock a “buy” rating in a research note on Friday, August 7th. Needham & Company LLC reiterated a “buy” rating and set a $35.00 price target on shares of DraftKings in a report on Friday. Stifel Nicolaus decreased their price objective on shares of DraftKings from $40.00 to $38.00 and set a “buy” rating on the stock in a report on Wednesday, July 22nd. New Street Research set a $29.00 target price on DraftKings in a research report on Monday, June 1st. Finally, Wall Street Zen downgraded DraftKings from a “hold” rating to a “sell” rating in a research note on Saturday, August 15th. One research analyst has rated the stock with a Strong Buy rating, thirty have given a Buy rating, eight have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, DraftKings presently has an average rating of “Moderate Buy” and an average target price of $34.36.

DraftKings Stock Performance

DKNG opened at $21.75 on Friday. The business’s 50-day simple moving average is $24.32 and its 200 day simple moving average is $24.57. DraftKings has a 52-week low of $20.46 and a 52-week high of $44.22. The company has a debt-to-equity ratio of 3.22, a quick ratio of 1.02 and a current ratio of 1.02. The firm has a market capitalization of $10.80 billion, a PE ratio of -57.24, a PEG ratio of 1.78 and a beta of 1.63.

DraftKings (NASDAQ:DKNG) last posted its quarterly earnings results on Friday, August 7th. The company reported $0.09 earnings per share for the quarter, topping the consensus estimate of $0.02 by $0.07. The firm had revenue of $1.44 billion for the quarter, compared to analyst estimates of $1.51 billion. DraftKings had a negative return on equity of 11.26% and a negative net margin of 2.68%.The business’s quarterly revenue was down 4.6% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.30 EPS. As a group, sell-side analysts expect that DraftKings will post 0.49 earnings per share for the current fiscal year.

Insider Buying and Selling at DraftKings

In other news, Director Jocelyn Moore sold 10,759 shares of DraftKings stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $24.05, for a total value of $258,753.95. Following the completion of the sale, the director directly owned 1,881 shares in the company, valued at approximately $45,238.05. The trade was a 85.12% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 47.18% of the company’s stock.

Hedge Funds Weigh In On DraftKings

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Janus Henderson Group PLC raised its stake in DraftKings by 50.8% in the fourth quarter. Janus Henderson Group PLC now owns 25,313,909 shares of the company’s stock valued at $858,893,000 after purchasing an additional 8,524,923 shares in the last quarter. Capital World Investors grew its stake in DraftKings by 181.4% during the fourth quarter. Capital World Investors now owns 18,626,429 shares of the company’s stock worth $641,867,000 after buying an additional 12,008,357 shares in the last quarter. Geode Capital Management LLC increased its holdings in DraftKings by 2.1% in the 4th quarter. Geode Capital Management LLC now owns 9,494,860 shares of the company’s stock valued at $326,394,000 after buying an additional 192,160 shares during the period. Eminence Capital LP raised its position in shares of DraftKings by 34.3% in the 4th quarter. Eminence Capital LP now owns 8,426,755 shares of the company’s stock valued at $290,386,000 after buying an additional 2,151,892 shares in the last quarter. Finally, Norges Bank acquired a new position in shares of DraftKings in the 4th quarter valued at approximately $284,466,000. 37.70% of the stock is owned by institutional investors and hedge funds.

Key DraftKings News

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: UBS maintained a Buy rating while trimming its price target modestly from $49 to $48. Needham also reaffirmed its Buy rating with a $35 target, implying considerable potential upside from current levels. DraftKings analyst ratings
• Positive Sentiment: Several market commentaries argue that DraftKings’ roughly 35% decline in 2025 has created a valuation opportunity, with analysts still anticipating a possible recovery of approximately 50% or more. DraftKings stock plunges despite bullish analyst targets
• Neutral Sentiment: Coverage describing DraftKings entering a “new phase” highlights ongoing strategic development, while a separate TRWD licensing announcement concerns another company and does not appear to provide a direct catalyst for DKNG. What is driving DraftKings into a new phase
• Negative Sentiment: Prediction-market platform Kalshi is attracting substantial sports-event wagering volume following the start of the NFL season. Investors fear these event-contract platforms could compete with DraftKings for customer activity and betting dollars, despite CEO reassurances. DraftKings is losing to prediction markets
• Negative Sentiment: Commentary remains cautious after DraftKings underperformed the broader market. Jim Cramer advised a caller to consider moving on from the stock, reinforcing concerns about execution, valuation, and the lack of a clear near-term catalyst. Jim Cramer discusses moving on from DraftKings

DraftKings Company Profile

DraftKings Inc is a digital sports entertainment and gaming company that operates online sports betting, iGaming and daily fantasy sports platforms. Its products enable customers to place bets on professional and collegiate sports, play online casino games where permitted, and participate in fantasy contests across a range of sports.

The company also offers related services, including retail sportsbooks in select jurisdictions and sports media content through DraftKings Network. Its offerings are available in U.S.