DraftKings (NASDAQ:DKNG) Stock Gets Price Target Cut from Sanford C. Bernstein

DraftKings (NASDAQ:DKNG) had its price target lowered by Sanford C. Bernstein from $27.00 to $22.00 in a research report released on Monday, MarketBeat.com reports. The brokerage currently has an outperform rating on the stock.

A number of other research firms have also recently commented on DKNG. Morgan Stanley reduced their price target on DraftKings from $36.00 to $31.00 and set an “overweight” rating for the company in a report on Monday, October 19th. Stifel Nicolaus downgraded DraftKings from a “buy” rating to a “hold” rating and reduced their target price for the stock from $32.00 to $21.00 in a research note on Monday. Wall Street Zen lowered shares of DraftKings from a “hold” rating to a “sell” rating in a research report on Saturday, August 15th. Weiss Ratings downgraded DraftKings from a “sell (d)” rating to a “sell (e+)” rating in a research report on Friday, August 21st. Finally, Guggenheim decreased their price target on shares of DraftKings from $33.00 to $30.00 and set a “buy” rating on the stock in a research note on Wednesday, October 7th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-five have given a Buy rating, ten have issued a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, DraftKings has a consensus rating of “Moderate Buy” and a consensus target price of $27.61.

DraftKings Price Performance

DKNG stock opened at $19.64 on Monday. The stock has a 50-day moving average price of $21.20 and a two-hundred day moving average price of $23.88. The stock has a market cap of $9.79 billion, a PE ratio of -24.55, a price-to-earnings-growth ratio of 2.54 and a beta of 1.65. The company has a current ratio of 0.99, a quick ratio of 1.02 and a debt-to-equity ratio of 12.21. DraftKings has a 1 year low of $16.55 and a 1 year high of $36.98.

DraftKings (NASDAQ:DKNG) last announced its quarterly earnings data 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 43.92% and a negative net margin of 5.91%. The business had revenue of $1.33 billion during the quarter, compared to the consensus estimate of $1.39 billion. During the same period in the prior year, the firm earned ($0.26) EPS. The business’s revenue for the quarter was up 16.2% compared to the same quarter last year. Equities analysts forecast that DraftKings will post 0.31 EPS for the current fiscal year.

Insider Buying and Selling at DraftKings

In other DraftKings news, Director Jocelyn Moore sold 10,759 shares of DraftKings stock in a transaction 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 sale, the director directly owned 1,881 shares of the company’s stock, valued at approximately $45,238.05. The trade was a 85.12% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, 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 business’s stock in a transaction on Monday, November 9th. The stock was purchased at an average price of $18.51 per share, for a total transaction of $349,987.08. Following the acquisition, the chief financial officer owned 214,692 shares of the company’s stock, valued at approximately $3,973,948.92. This represents a 9.66% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders own 47.18% of the company’s stock.

Institutional Trading of DraftKings

A number of institutional investors and hedge funds have recently modified their holdings of the business. Private Advisor Group LLC increased its position in shares of DraftKings by 11.0% during the 3rd quarter. Private Advisor Group LLC now owns 74,437 shares of the company’s stock valued at $1,414,000 after purchasing an additional 7,356 shares during the last quarter. Edgestream Partners L.P. purchased a new position in shares of DraftKings in the 3rd quarter worth about $870,000. HighTower Advisors LLC boosted its holdings in shares of DraftKings by 5.0% in the 3rd quarter. HighTower Advisors LLC now owns 134,098 shares of the company’s stock worth $2,548,000 after buying an additional 6,403 shares during the last quarter. Ibex Investors LLC boosted its holdings in shares of DraftKings by 92.3% in the 3rd quarter. Ibex Investors LLC now owns 125,000 shares of the company’s stock worth $2,375,000 after buying an additional 60,000 shares during the last quarter. Finally, Machina Capital S.A.S. bought a new position in DraftKings during the third quarter valued at about $224,000. 37.70% of the stock is owned by hedge funds and other institutional investors.

Top DraftKings Stories

Here are a few of the latest stories about DKNG:

• Negative Sentiment: Several firms cut DraftKings’ ratings or price targets after its latest results and outlook reset. JPMorgan lowered its rating, while Bernstein, Barclays, TD Cowen, Truist, BTIG and Canaccord issued target cuts or more cautious forecasts, signaling diminished confidence in near-term earnings prospects. JPMorgan rating change
• Negative Sentiment: The main concern is the expense and uncertain economics of DraftKings’ Predictions business. An investigation by Levi & Korsinsky questions whether SEC filings adequately disclosed the investment’s costs before the company cited a $650 million to $700 million commitment. The inquiry is an allegation, not a finding of wrongdoing. Levi & Korsinsky investigation notice
• Negative Sentiment: Rosen Law Firm also announced an investigation into potential securities claims, alleging DraftKings may have provided materially misleading business information. The announcement creates a legal overhang but does not establish that the claims have merit. Rosen Law Firm investigation notice

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.