DraftKings (NASDAQ:DKNG) Price Target Cut to $35.00 by Analysts at Citizens Jmp

DraftKings (NASDAQ:DKNG) had its price target decreased by analysts at Citizens Jmp from $37.00 to $35.00 in a research note issued on Thursday, Benzinga reports. The brokerage presently has a “market outperform” rating on the stock. Citizens Jmp’s price objective indicates a potential upside of 64.71% from the stock’s previous close.

Several other research firms have also recently weighed in on DKNG. TD Cowen increased their price objective on DraftKings from $30.00 to $35.00 and gave the stock a “buy” rating in a research report on Friday, July 10th. Deutsche Bank Aktiengesellschaft lifted their price objective on shares of DraftKings from $26.00 to $28.00 and gave the company a “hold” rating in a research note on Thursday, July 9th. Stifel Nicolaus decreased their price target 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. UBS Group cut their price objective on DraftKings from $49.00 to $48.00 and set a “buy” rating on the stock in a report on Friday, September 18th. Finally, JPMorgan Chase & Co. cut their price target on shares of DraftKings from $34.00 to $33.00 and set an “overweight” rating on the stock in a report on Monday, August 10th. One equities research analyst has rated the stock with a Strong Buy rating, thirty have given a Buy rating, eight have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, DraftKings currently has a consensus rating of “Moderate Buy” and an average target price of $34.29.

DraftKings Stock Performance

Shares of NASDAQ DKNG opened at $21.25 on Thursday. DraftKings has a 12 month low of $20.46 and a 12 month high of $43.66. The company has a market capitalization of $10.55 billion, a P/E ratio of -55.92, a P/E/G ratio of 1.78 and a beta of 1.63. The stock has a 50 day moving average of $24.08 and a 200-day moving average of $24.50. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 3.22.

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

Insider Buying and Selling at DraftKings

In other news, Director Jocelyn Moore sold 10,759 shares of the stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $24.05, for a total transaction of $258,753.95. Following the transaction, the director owned 1,881 shares of the company’s stock, valued at $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 is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 47.18% of the company’s stock.

Institutional Investors Weigh In On DraftKings

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Capital World Investors grew its holdings 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. Janus Henderson Group PLC boosted its position in DraftKings by 50.8% during the fourth quarter. Janus Henderson Group PLC now owns 25,313,909 shares of the company’s stock worth $858,893,000 after purchasing an additional 8,524,923 shares during the period. Norges Bank bought a new position in DraftKings in the 4th quarter worth approximately $284,466,000. Spruce House Investment Management LLC grew its position 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 valued at $208,633,000 after purchasing an additional 5,446,166 shares in the last quarter. Finally, Capital Research Global Investors grew its holdings in DraftKings by 55.9% during the 4th quarter. Capital Research Global Investors now owns 6,615,721 shares of the company’s stock valued at $227,978,000 after buying an additional 2,372,520 shares in the last quarter. Institutional investors and hedge funds own 37.70% of the company’s stock.

Trending Headlines about DraftKings

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: Prediction markets are showing rapid growth. Trading volume reportedly increased from $2.3 billion to $11 billion in three months, while customer growth reached 10.4% year over year. Supporters believe the business can attract new users, generate higher-margin revenue and strengthen DraftKings’ “Super App” strategy. DraftKings: Prediction Pessimism Overly Done – H2’26 Outperformance May Deliver Breakout
• Positive Sentiment: Vertical integration could improve profitability. DraftKings is seeking to capture more of the economics of its prediction business and is pursuing a potential 30% adjusted EBITDA margin, which could make the new segment more valuable if execution is successful. Can DKNG’s Vertical Integration Unlock a 30% Adjusted EBITDA Margin?
• Positive Sentiment: Valuation is attracting bullish investors. One analysis described DraftKings’ roughly 1.75-times enterprise-value-to-sales valuation as discounted relative to its growth prospects, arguing that stronger second-half performance could support a breakout. DraftKings Stock Price Up 6.3% – Time to Buy?
• Neutral Sentiment: Management’s outlook remains a key uncertainty. The CEO questioned why the stock reacts positively or negatively to prediction-market news, while analysts viewed the recent decline as rational because the strategy requires substantial investment before benefits are realized. DraftKings CEO Doesn’t Know Why His Stock Loves Bad Prediction Market News
• Negative Sentiment: Higher spending is pressuring margins. Plans to invest aggressively in prediction markets raised concerns that customer-acquisition costs and near-term EBITDA losses could offset the segment’s long-term promise. DraftKings Drops as Prediction-Market Spending Plans Stir Margin Doubts
• Negative Sentiment: Balance-sheet and reputational risks remain. Share repurchases have contributed to balance-sheet deterioration, while commentary questioning whether DraftKings benefits from frequent losing gamblers could create responsible-gaming and regulatory concerns. Is DraftKings Betting Big on Losing Gamblers?

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.