DraftKings (NASDAQ:DKNG) Reaches New 52-Week Low After Analyst Downgrade

DraftKings Inc. (NASDAQ:DKNG) shares reached a new 52-week low during mid-day trading on Wednesday after Zacks Research downgraded the stock from a hold rating to a strong sell rating. The stock traded as low as $18.50 and last traded at $18.7550, with a volume of 6,669,281 shares. The stock had previously closed at $19.72.

Several other research firms have also weighed in on DKNG. Sanford C. Bernstein boosted their target price on DraftKings from $27.00 to $29.00 and gave the stock an “outperform” rating in a report on Thursday, September 3rd. Susquehanna decreased their target price on DraftKings from $33.00 to $27.00 and set a “positive” rating for the company in a research report on Thursday, October 8th. Deutsche Bank Aktiengesellschaft increased their price target on DraftKings from $26.00 to $28.00 and gave the company a “hold” rating in a report on Thursday, July 9th. Weiss Ratings cut shares of DraftKings from a “sell (d)” rating to a “sell (e+)” rating in a research note on Friday, August 21st. Finally, Benchmark upped their price objective on shares of DraftKings from $29.00 to $30.00 and gave the stock a “buy” rating in a report on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, thirty have assigned a Buy rating, six have given a Hold rating and three have issued a Sell rating to the company’s stock. According to data from MarketBeat, DraftKings presently has an average rating of “Moderate Buy” and a consensus target price of $33.70.

Insider Buying and Selling at DraftKings

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

Key DraftKings News

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: DraftKings’ derivatives exchange, DKeX, self-certified protected NBA player-proposition contracts. The move could support product expansion and strengthen the company’s position in event-based wagering, although regulatory scrutiny remains a consideration. DraftKings Stock Has Catalysts, DKeX Self-Certifies Protected NBA Player Props
• Positive Sentiment: DraftKings generates a free-cash-flow yield of roughly 5.3%, above the S&P 500 median cited in the coverage. Investors could view that valuation as attractive if the company can stabilize growth and convert betting activity into higher revenue. Why Are Investors Paying So Little For DraftKings Stock’s Cash?
• Neutral Sentiment: Wall Street’s average recommendation remains equivalent to “Buy,” but the coverage cautions that consensus analyst ratings may lag deteriorating estimates and do not necessarily reflect current operating risks. Brokers Suggest Investing in DraftKings
• Negative Sentiment: Jefferies reduced its 2026 adjusted earnings forecast by 15%, citing heavier investment in prediction markets and slower iGaming growth. Prediction-market spending could exceed the original $200 million–$300 million plan by an additional $100 million in the second half of 2026, pressuring near-term profitability. DraftKings Faces Earnings Pressure as Prediction Market Spending Rises
• Negative Sentiment: The core monetization trend is concerning: sports-betting volume rose 15% to approximately $13.1 billion in the latest quarter, while revenue fell 5% to about $1.44 billion. This suggests promotional intensity, unfavorable results, or competitive pressure is limiting revenue per bettor. DraftKings Is Attracting More Bettors. Why Are Earnings Falling?
• Negative Sentiment: Zacks Research downgraded DraftKings from “Hold” to “Strong Sell,” adding to concerns about the stock’s steep decline, regulatory uncertainty, earnings-estimate cuts, and competition from prediction markets. DraftKings Downgrade Report

Institutional Investors Weigh In On DraftKings

Several hedge funds have recently modified their holdings of DKNG. Janus Henderson Group PLC increased its position in DraftKings by 9.3% during the first quarter. Janus Henderson Group PLC now owns 27,665,699 shares of the company’s stock worth $588,288,000 after acquiring an additional 2,351,790 shares during the period. Spruce House Investment Management LLC increased its holdings in shares of DraftKings by 129.6% during the 1st quarter. Spruce House Investment Management LLC now owns 9,650,000 shares of the company’s stock worth $208,633,000 after purchasing an additional 5,446,166 shares during the period. Eminence Capital LP increased its holdings in shares of DraftKings by 34.3% during the 4th quarter. Eminence Capital LP now owns 8,426,755 shares of the company’s stock worth $290,386,000 after purchasing an additional 2,151,892 shares during the period. Bamco Inc. NY raised its position in shares of DraftKings by 13.8% during the fourth quarter. Bamco Inc. NY now owns 4,674,455 shares of the company’s stock valued at $161,082,000 after buying an additional 568,487 shares during the last quarter. Finally, Swiss National Bank raised its position in shares of DraftKings by 7.4% during the first quarter. Swiss National Bank now owns 1,314,864 shares of the company’s stock valued at $28,427,000 after buying an additional 90,400 shares during the last quarter. 37.70% of the stock is owned by institutional investors.

DraftKings Price Performance

The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 3.22. The stock’s 50-day moving average price is $22.85 and its 200 day moving average price is $24.00.

DraftKings (NASDAQ:DKNG) last released its earnings results on Friday, August 7th. The company reported $0.09 earnings per share for the quarter, topping analysts’ consensus estimates of $0.02 by $0.07. DraftKings had a negative return on equity of 11.26% and a negative net margin of 2.68%. The business had revenue of $1.44 billion for the quarter, compared to the consensus estimate of $1.51 billion. During the same period last year, the business earned $0.30 earnings per share. The firm’s revenue for the quarter was down 4.6% compared to the same quarter last year. Equities analysts predict that DraftKings Inc. will post 0.40 EPS for the current year.

DraftKings Company Profile

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.