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

DraftKings (NASDAQ:DKNG) had its target price reduced by Sanford C. Bernstein from $29.00 to $27.00 in a research report released on Tuesday morning,Benzinga reports. Sanford C. Bernstein currently has an outperform rating on the stock.

A number of other equities analysts have also commented on the company. Benchmark increased their price target on DraftKings from $29.00 to $30.00 and gave the company a “buy” rating in a research note on Friday, August 7th. Weiss Ratings cut DraftKings from a “sell (d)” rating to a “sell (e+)” rating in a report on Friday, August 21st. Barclays lowered their target price on DraftKings from $35.00 to $34.00 and set an “overweight” rating for the company in a research report on Monday, August 10th. Zacks Research downgraded DraftKings from a “hold” rating to a “strong sell” rating in a research report on Tuesday, October 13th. Finally, Truist Financial cut their target price on shares of DraftKings from $29.00 to $26.00 and set a “buy” rating for the company in a report on Tuesday, October 20th. One investment analyst has rated the stock with a Strong Buy rating, thirty have issued a Buy rating, six have issued a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $32.79.

DraftKings Stock Performance

Shares of DKNG stock opened at $23.52 on Tuesday. The company’s fifty day simple moving average is $21.62 and its two-hundred day simple moving average is $24.13. DraftKings has a 52 week low of $18.35 and a 52 week high of $36.98. 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 Thursday, November 5th. The company reported ($0.53) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.41) by ($0.12). DraftKings had a negative net margin of 2.68% and a negative return on equity of 11.26%. The firm had revenue of $1.33 billion for the quarter, compared to analysts’ expectations of $1.39 billion. During the same quarter in the previous year, the business earned ($0.26) EPS. The company’s revenue for the quarter was up 16.2% on a year-over-year basis. As a group, research analysts predict that DraftKings will post 0.31 EPS for the current year.

Insiders Place Their Bets

In other news, Director Jocelyn Moore sold 10,759 shares of the 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 sale, the director owned 1,881 shares of the company’s stock, valued at approximately $45,238.05. This represents a 85.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 47.18% of the stock is owned by company insiders.

Institutional Trading of DraftKings

Several institutional investors have recently added to or reduced their stakes in the company. Renaissance Technologies LLC acquired a new stake in shares of DraftKings in the first quarter worth approximately $17,660,000. Spruce House Investment Management LLC raised its stake in DraftKings by 129.6% in the 1st 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 during the last quarter. Janus Henderson Group PLC raised its stake in DraftKings by 9.3% in the 1st 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 last quarter. Edgestream Partners L.P. purchased a new position in DraftKings in the 1st quarter valued at $4,473,000. Finally, Entropy Technologies LP purchased a new position in DraftKings in the 1st quarter valued at $2,669,000. Institutional investors own 37.70% of the company’s stock.

DraftKings News Roundup

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: DraftKings said its prediction-markets business could generate as much as $750 million in revenue in 2027, presenting a potential growth avenue beyond traditional sports betting. That opportunity remains prospective and may depend on regulatory developments. Article: DraftKings Stock Dives on Q3 Miss, Lower Guidance
• Positive Sentiment: Third-quarter revenue increased about 16% year over year to $1.329 billion, showing continued top-line growth despite missing analyst expectations. Article: DraftKings Q3 Financials
• Negative Sentiment: The company cut its 2026 revenue forecast to $6.35 billion–$6.55 billion from $6.5 billion–$6.9 billion, citing in part increased investment in prediction markets. The lower outlook signals weaker near-term expectations and added spending. Article: DraftKings Cuts Outlook as It Pours More Money Into Prediction Markets
• Negative Sentiment: DraftKings reported a quarterly loss that was worse than analysts expected. Its revenue also fell short of consensus, adding to concerns that growth is not yet translating into improved profitability. Article: DraftKings Reports Q3 Loss, Misses Revenue Estimates

DraftKings Company Profile

DraftKings Inc is a digital sports entertainment and gaming company that operates online and mobile platforms for sports betting, casino gaming and daily fantasy sports. Its offerings include the DraftKings Sportsbook, DraftKings Casino and daily fantasy contests covering a range of professional and collegiate sports.

The company also provides related entertainment and media content through DraftKings Network, along with free-to-play games, promotions and other interactive products designed to complement its sports and gaming platforms.