DraftKings (NASDAQ:DKNG) Rating Lowered to “Strong Sell” at Zacks Research

DraftKings (NASDAQ:DKNG) was downgraded by research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued to clients and investors on Thursday,Zacks.com reports.

Several other equities analysts have also recently issued reports on DKNG. Berenberg Bank set a $43.00 target price on shares of DraftKings and gave the company a “buy” rating in a research note on Thursday, October 9th. Wall Street Zen downgraded shares of DraftKings from a “buy” rating to a “hold” rating in a research report on Friday, October 3rd. Mizuho dropped their target price on DraftKings from $58.00 to $54.00 and set an “outperform” rating on the stock in a research report on Tuesday, October 7th. Oppenheimer cut their price target on DraftKings from $60.00 to $55.00 and set an “outperform” rating for the company in a research note on Wednesday, October 1st. Finally, Stifel Nicolaus lowered their price target on DraftKings from $51.00 to $50.00 and set a “buy” rating on the stock in a research report on Monday, October 27th. Twenty-six research analysts have rated the stock with a Buy rating, two have given a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $51.83.

DraftKings Stock Performance

NASDAQ DKNG opened at $30.40 on Thursday. The firm has a market capitalization of $15.09 billion, a P/E ratio of -53.33, a PEG ratio of 0.95 and a beta of 1.86. The stock has a 50-day simple moving average of $37.88 and a two-hundred day simple moving average of $39.40. The company has a debt-to-equity ratio of 1.82, a quick ratio of 1.34 and a current ratio of 1.34. DraftKings has a fifty-two week low of $26.23 and a fifty-two week high of $53.61.

DraftKings (NASDAQ:DKNG) last posted its earnings results on Thursday, November 6th. The company reported ($0.26) EPS for the quarter, missing the consensus estimate of $0.01 by ($0.27). DraftKings had a negative return on equity of 21.47% and a negative net margin of 4.90%.The company had revenue of $1.14 billion for the quarter, compared to analyst estimates of $1.40 billion. During the same period last year, the business earned ($0.60) earnings per share. The firm’s revenue was up 4.4% on a year-over-year basis. DraftKings has set its FY 2025 guidance at EPS. On average, equities analysts forecast that DraftKings will post 0.64 earnings per share for the current year.

Insiders Place Their Bets

In other DraftKings news, Director Jocelyn Moore sold 4,861 shares of the firm’s stock in a transaction on Wednesday, August 13th. The stock was sold at an average price of $43.21, for a total value of $210,043.81. Following the transaction, the director owned 1,461 shares in the company, valued at approximately $63,129.81. This trade represents a 76.89% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CFO Alan Wayne Ellingson sold 44,693 shares of the company’s stock in a transaction on Tuesday, August 19th. The stock was sold at an average price of $44.90, for a total transaction of $2,006,715.70. Following the sale, the chief financial officer directly owned 128,131 shares of the company’s stock, valued at $5,753,081.90. The trade was a 25.86% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 552,777 shares of company stock valued at $23,337,924. 51.19% of the stock is owned by corporate insiders.

Institutional Trading of DraftKings

Several large investors have recently bought and sold shares of the business. Bank of Jackson Hole Trust purchased a new position in DraftKings in the 1st quarter worth approximately $31,000. Root Financial Partners LLC acquired a new stake in shares of DraftKings in the third quarter valued at approximately $33,000. TD Private Client Wealth LLC lifted its position in DraftKings by 54.4% during the second quarter. TD Private Client Wealth LLC now owns 800 shares of the company’s stock worth $34,000 after buying an additional 282 shares in the last quarter. Summit Securities Group LLC boosted its stake in DraftKings by 349.1% during the first quarter. Summit Securities Group LLC now owns 1,042 shares of the company’s stock worth $35,000 after buying an additional 810 shares during the last quarter. Finally, AlphaQuest LLC purchased a new stake in DraftKings in the 3rd quarter valued at $41,000. Hedge funds and other institutional investors own 37.70% of the company’s stock.

DraftKings Company Profile

DraftKings Inc operates as a digital sports entertainment and gaming company in the United States and internationally. It provides online sports betting and casino, daily fantasy sports, media, and other consumer products, as well as retails sportsbooks. The company also engages in the design and development of sports betting and casino gaming software for online and retail sportsbooks, and iGaming operators.