DraftKings (NASDAQ:DKNG) Raised to “Hold” at Zacks Research

DraftKings (NASDAQ:DKNG) was upgraded by equities researchers at Zacks Research from a “strong sell” rating to a “hold” rating in a research report issued on Wednesday, Zacks reports.

Several other research analysts have also recently weighed in on the company. Citizens Jmp decreased their price target on DraftKings from $37.00 to $35.00 and set a “market outperform” rating for the company in a research note on Thursday, September 24th. Mizuho dropped their price objective on DraftKings from $45.00 to $35.00 and set an “outperform” rating on the stock in a research report on Monday. UBS Group downgraded DraftKings from a “buy” rating to a “neutral” rating and reduced their price objective for the stock from $48.00 to $22.00 in a report on Monday. Benchmark boosted their target price on DraftKings from $29.00 to $30.00 and gave the stock a “buy” rating in a research report on Friday, August 7th. Finally, Susquehanna restated a “positive” rating and set a $23.00 target price on shares of DraftKings in a research note on Monday. One investment analyst has rated the stock with a Strong Buy rating, twenty-five have issued a Buy rating, eleven have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $27.61.

DraftKings Price Performance

Shares of DKNG opened at $19.12 on Wednesday. DraftKings has a twelve month low of $16.55 and a twelve month high of $36.98. The company has a market capitalization of $9.53 billion, a P/E ratio of -23.90, a price-to-earnings-growth ratio of 2.58 and a beta of 1.65. The firm has a 50 day moving average of $21.10 and a 200 day moving average of $23.82. The company has a quick ratio of 1.02, a current ratio of 0.99 and a debt-to-equity ratio of 12.21.

DraftKings (NASDAQ:DKNG) last released its quarterly earnings data on Thursday, November 5th. The company reported ($0.53) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.41) by ($0.12). DraftKings had a negative net margin of 5.91% and a negative return on equity of 43.92%. The business had revenue of $1.33 billion during the quarter, compared to the consensus estimate of $1.39 billion. During the same period last year, the company posted ($0.26) earnings per share. The business’s revenue was up 16.2% compared to the same quarter last year. As a group, equities research analysts anticipate that DraftKings will post 0.31 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other DraftKings news, Director Jocelyn Moore sold 10,759 shares of the 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 transaction, the director directly owned 1,881 shares in the company, valued at approximately $45,238.05. This trade represents a 85.12% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Alan Ellingson purchased 18,908 shares of the company’s stock in a transaction dated Monday, November 9th. The shares were acquired at an average price of $18.51 per share, for a total transaction of $349,987.08. Following the purchase, the chief financial officer directly owned 214,692 shares in the company, valued at approximately $3,973,948.92. The trade was a 9.66% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 47.18% of the company’s stock.

Hedge Funds Weigh In On DraftKings

Institutional investors have recently bought and sold shares of the stock. Janus Henderson Group PLC grew its holdings in DraftKings by 9.3% during the first quarter. Janus Henderson Group PLC now owns 27,665,699 shares of the company’s stock valued at $588,288,000 after purchasing an additional 2,351,790 shares during the period. Spruce House Investment Management LLC raised its stake in shares of DraftKings by 129.6% in the first quarter. Spruce House Investment Management LLC now owns 9,650,000 shares of the company’s stock worth $208,633,000 after buying an additional 5,446,166 shares during the period. Swiss National Bank raised its stake in shares of DraftKings by 7.4% in the first quarter. Swiss National Bank now owns 1,314,864 shares of the company’s stock worth $28,427,000 after buying an additional 90,400 shares during the period. Bank of New York Mellon Corp bought a new position in shares of DraftKings in the second quarter worth about $24,014,000. Finally, First Trust Advisors LP lifted its position in shares of DraftKings by 1.7% during the 3rd quarter. First Trust Advisors LP now owns 1,061,043 shares of the company’s stock valued at $20,160,000 after buying an additional 17,781 shares in the last quarter. 37.70% of the stock is owned by institutional investors.

Top DraftKings Stories

These are some of the DKNG stories that stood out recently:

• Positive Sentiment: Director Gregory Wendt bought 5,000 shares for about $98,800, increasing his stake by 27.9%—a sign of confidence from a company insider. Insider purchase
• Positive Sentiment: DraftKings is targeting $650 million to $750 million in Predictions revenue in 2027, citing engagement and customer retention. Reports that the exchange’s revenue margins are nearing sportsbook levels could bolster the opportunity if the forecast is achieved. Predictions revenue outlook
• Negative Sentiment: Commentary points to growing prediction-market competition and uncertainty over the costs and profitability of DraftKings’ expansion. The company also recently missed quarterly revenue and earnings estimates, adding to concerns about execution.

About DraftKings

DraftKings Inc. is a digital sports and entertainment company founded in 2012. It began as a daily fantasy sports platform and has since expanded into online sports betting and gaming. The company offers daily fantasy contests, a sportsbook and online casino products, including games such as slots and table games. Its services are available in a range of U.S. jurisdictions and in Ontario, Canada, where permitted by local regulations. DraftKings is headquartered in Boston, Massachusetts. Co-founder Jason Robins serves as the company’s chief executive officer.