DraftKings (NASDAQ:DKNG) Shares Gap Down on Analyst Downgrade

DraftKings Inc. (NASDAQ:DKNG)’s stock price gapped down before the market opened on Monday after Barclays lowered their price target on the stock from $34.00 to $27.00. The stock had previously closed at $18.51, but opened at $17.79. Barclays currently has an overweight rating on the stock. DraftKings shares last traded at $18.4030, with a volume of 5,100,668 shares traded.

DKNG has been the subject of a number of other reports. UBS Group downgraded shares of DraftKings from a “buy” rating to a “neutral” rating and dropped their price target for the company from $48.00 to $22.00 in a research report on Monday. Mizuho set a $35.00 price target on DraftKings in a research report on Monday. Wolfe Research assumed coverage on DraftKings in a research note on Wednesday, September 2nd. They set an “outperform” rating and a $40.00 price objective on the stock. Weiss Ratings cut DraftKings from a “sell (d)” rating to a “sell (e+)” rating in a report on Friday, August 21st. Finally, Bank of America reaffirmed a “buy” rating on shares of DraftKings in a report on Friday. One analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating, nine have given a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, DraftKings presently has a consensus rating of “Moderate Buy” and a consensus target price of $29.61.

Insider Buying and Selling

In other news, Director Jocelyn Moore sold 10,759 shares of the business’s 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 completion of the transaction, the director directly owned 1,881 shares in the company, valued at approximately $45,238.05. The trade was a 85.12% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 47.18% of the stock is currently owned by corporate insiders.

Key DraftKings News

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: BTIG maintained a Buy rating with a $23 target, while Truist kept Buy and Bernstein kept Outperform, despite each cutting its price target. The revised targets imply potential upside from the approximately $18.50 price cited in the reports. BTIG rating information
• Positive Sentiment: A report highlighted rising hopes for legalized sports betting in Texas, a potential longer-term growth opportunity for DraftKings, while scrutiny of prediction markets could also affect the competitive landscape. Article on Texas betting and prediction markets
• Neutral Sentiment: Sportsbook net revenue grew 36% year over year in Q3, but DraftKings expects to invest $650 million to $700 million in its prediction-market business in 2026, raising questions about the cost and payoff of that expansion. Article on DraftKings long-term takeaways
• Negative Sentiment: DraftKings reported worse-than-expected Q3 results and cut fiscal 2026 guidance. The news drove a reported 21% one-session decline and helped push shares to a 52-week low, reinforcing concerns about costs, business challenges and demand. Article on analyst forecasts after Q3 results
• Negative Sentiment: UBS, JPMorgan and Stifel downgraded the stock; JPMorgan moved from Overweight to Neutral, saying it is increasingly difficult to recommend. Several firms also cut targets—including Truist to $22, Bernstein to $22 and BTIG to $23—adding pressure even though the revised targets remain above the cited share price. Article on analyst downgrades

Institutional Trading of DraftKings

Several large investors have recently made changes to their positions in the company. Kornitzer Capital Management Inc. KS raised its position in DraftKings by 0.4% during the third quarter. Kornitzer Capital Management Inc. KS now owns 176,620 shares of the company’s stock valued at $3,356,000 after purchasing an additional 691 shares in the last quarter. Integrity Advisory Solutions LLC lifted its stake in DraftKings by 8.2% during the third quarter. Integrity Advisory Solutions LLC now owns 10,571 shares of the company’s stock worth $201,000 after purchasing an additional 803 shares during the last quarter. CoreCap Advisors LLC boosted its holdings in shares of DraftKings by 336.5% in the 2nd quarter. CoreCap Advisors LLC now owns 1,148 shares of the company’s stock valued at $29,000 after purchasing an additional 885 shares in the last quarter. Englebert Financial Advisers LLC boosted its holdings in shares of DraftKings by 1.3% in the 3rd quarter. Englebert Financial Advisers LLC now owns 68,237 shares of the company’s stock valued at $1,297,000 after purchasing an additional 897 shares in the last quarter. Finally, Janney Montgomery Scott LLC boosted its holdings in shares of DraftKings by 2.0% in the 1st quarter. Janney Montgomery Scott LLC now owns 51,855 shares of the company’s stock valued at $1,121,000 after purchasing an additional 1,028 shares in the last quarter. Institutional investors and hedge funds own 37.70% of the company’s stock.

DraftKings Stock Performance

The company has a 50 day moving average price of $21.51 and a 200-day moving average price of $24.06. 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 company has a market cap of $9.14 billion, a P/E ratio of -23.01, a price-to-earnings-growth ratio of 2.43 and a beta of 1.65.

DraftKings (NASDAQ:DKNG) last posted its quarterly earnings results on Thursday, November 5th. The company reported ($0.53) EPS for the quarter, missing analysts’ consensus estimates of ($0.41) by ($0.12). DraftKings had a negative return on equity of 36.21% and a negative net margin of 5.91%. The business had revenue of $1.33 billion for the quarter, compared to analyst estimates of $1.39 billion. During the same period last year, the firm posted ($0.26) EPS. DraftKings’s quarterly revenue was up 16.2% on a year-over-year basis. On average, equities analysts expect that DraftKings Inc. will post 0.31 earnings per share for the current fiscal year.

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.