DraftKings (NASDAQ:DKNG) Reaches New 12-Month Low on Analyst Downgrade

Shares of DraftKings Inc. (NASDAQ:DKNG) reached a new 52-week low during trading on Thursday after BTIG Research lowered their price target on the stock from $30.00 to $25.00. BTIG Research currently has a buy rating on the stock. DraftKings traded as low as $18.95 and last traded at $19.00, with a volume of 14342804 shares trading hands. The stock had previously closed at $19.59.

Several other research analysts also recently commented on the stock. Wall Street Zen downgraded shares of DraftKings from a “hold” rating to a “sell” rating in a report on Saturday, August 15th. Deutsche Bank Aktiengesellschaft upped their price target on shares of DraftKings from $26.00 to $28.00 and gave the stock a “hold” rating in a report on Thursday, July 9th. Stifel Nicolaus dropped their price objective on DraftKings from $40.00 to $38.00 and set a “buy” rating for the company in a research note on Wednesday, July 22nd. Morgan Stanley reduced their target price on DraftKings from $39.00 to $36.00 and set an “overweight” rating for the company in a research report on Thursday, July 23rd. Finally, TD Cowen upped their target price on DraftKings from $30.00 to $35.00 and gave the stock a “buy” rating in a research note on Friday, July 10th. One equities research analyst has rated the stock with a Strong Buy rating, thirty have issued a Buy rating, eight have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, DraftKings currently has a consensus rating of “Moderate Buy” and an average price target of $34.14.

Insider Transactions at DraftKings

In other news, Director Jocelyn Moore sold 10,759 shares of the company’s stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $24.05, for a total value of $258,753.95. Following the completion of the transaction, the director directly owned 1,881 shares in the company, valued at approximately $45,238.05. This represents a 85.12% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 47.18% of the stock is currently owned by company insiders.

DraftKings News Roundup

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: DraftKings is shifting Predictions activity to its DKeX exchange, which could allow the company to retain more fees, improve market liquidity, and increase higher-margin profit per customer through 2027. Can DKNG’s DKeX Rollout Lift Profit Per Customer Into 2027?
• Positive Sentiment: Analysts remain broadly constructive, with DraftKings carrying an average price target of $34.14. BTIG also maintained a “buy” rating, implying substantial upside despite reducing its target from $30 to $25. DraftKings Stock Has Average Price Target of $34.14
• Neutral Sentiment: DraftKings’ longer-term strategy is shifting from sports betting toward Predictions and other opportunities intended to support profitability. However, the stock’s elevated valuation leaves it vulnerable if growth slows. DraftKings’ 2026 Outlook
• Negative Sentiment: A New York Times investigation into DraftKings’ promotional targeting contributed to the recent selloff. DraftKings disputes the report, but the controversy has increased reputational and regulatory concerns. How Big Could DraftKings Stock’s Next Fall Be?
• Negative Sentiment: Investors are also concerned about intensified betting-industry competition and the possibility that DraftKings could experience another steep decline during a broader market shock. Why Did DKNG and Other Stocks Tumble to 52-Week Lows?

Institutional Trading of DraftKings

A number of hedge funds have recently bought and sold shares of the company. Renaissance Technologies LLC bought a new stake in DraftKings in the first quarter worth $17,660,000. Spruce House Investment Management LLC grew its stake in shares of DraftKings by 129.6% during the first quarter. Spruce House Investment Management LLC now owns 9,650,000 shares of the company’s stock valued at $208,633,000 after buying an additional 5,446,166 shares during the last quarter. Janus Henderson Group PLC increased its holdings in shares of DraftKings by 9.3% in the first quarter. Janus Henderson Group PLC now owns 27,665,699 shares of the company’s stock worth $588,288,000 after buying an additional 2,351,790 shares during the period. Aurora Investment Counsel purchased a new position in shares of DraftKings in the fourth quarter worth about $2,157,000. Finally, Capital World Investors lifted its stake in shares of DraftKings by 181.4% in the 4th quarter. Capital World Investors now owns 18,626,429 shares of the company’s stock valued at $641,867,000 after acquiring an additional 12,008,357 shares during the last quarter. Institutional investors own 37.70% of the company’s stock.

DraftKings Stock Performance

The company has a market cap of $9.23 billion, a P/E ratio of -48.92, a price-to-earnings-growth ratio of 1.95 and a beta of 1.61. The business has a 50 day moving average price of $23.57 and a two-hundred day moving average price of $24.24. The company has a debt-to-equity ratio of 3.22, a quick ratio of 1.02 and a current ratio of 1.02.

DraftKings (NASDAQ:DKNG) last released its quarterly earnings data on Friday, August 7th. The company reported $0.09 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.02 by $0.07. DraftKings had a negative net margin of 2.68% and a negative return on equity of 11.26%. The firm had revenue of $1.44 billion for the quarter, compared to analysts’ expectations of $1.51 billion. During the same quarter in the previous year, the company earned $0.30 earnings per share. The company’s revenue for the quarter was down 4.6% compared to the same quarter last year. On average, sell-side analysts anticipate that DraftKings Inc. will post 0.4 earnings per share for the current year.

About DraftKings

DraftKings Inc is a digital sports entertainment and gaming company that provides online sports betting, daily fantasy sports and internet-based casino gaming. Its products are delivered through mobile applications and websites, allowing customers to wager on professional and collegiate sports, participate in fantasy contests and play a range of casino games where permitted by law.

The company also offers sports and betting-related content through DraftKings Network and operates additional gaming and entertainment products, including online lottery services in select markets.