Canaccord Genuity Group Has Lowered Expectations for DraftKings (NASDAQ:DKNG) Stock Price

DraftKings (NASDAQ:DKNG) had its target price reduced by research analysts at Canaccord Genuity Group from $40.00 to $30.00 in a research note issued on Monday, Benzinga reports. The firm presently has a “buy” rating on the stock. Canaccord Genuity Group‘s price objective suggests a potential upside of 61.42% from the stock’s current price.

DKNG has been the topic of several other reports. TD Cowen dropped their price objective on shares of DraftKings from $35.00 to $25.00 and set a “buy” rating for the company in a report on Monday. Moffett Nathanson reiterated a “neutral” rating and issued a $22.00 target price on shares of DraftKings in a research note on Thursday, October 22nd. Susquehanna reissued a “positive” rating and issued a $23.00 target price on shares of DraftKings in a report on Monday. 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 report on Monday. Finally, JPMorgan Chase & Co. lowered DraftKings from an “overweight” rating to a “neutral” rating and set a $21.00 price target on the stock. in a research report on Monday. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating, nine have issued a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $28.98.

DraftKings Price Performance

Shares of NASDAQ DKNG traded up $0.07 during midday trading on Monday, reaching $18.59. 12,439,524 shares of the company traded hands, compared to its average volume of 13,772,149. DraftKings has a 12 month low of $16.55 and a 12 month high of $36.98. The company has a debt-to-equity ratio of 3.22, a quick ratio of 1.02 and a current ratio of 1.02. The stock’s 50-day simple moving average is $21.51 and its 200-day simple moving average is $24.06. The firm has a market cap of $9.23 billion, a PE ratio of -23.17, a PEG ratio of 2.43 and a beta of 1.65.

DraftKings (NASDAQ:DKNG) last posted its earnings results on Thursday, November 5th. The company reported ($0.53) earnings per share for the quarter, missing the consensus estimate 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 firm had revenue of $1.33 billion during the quarter, compared to the consensus estimate of $1.39 billion. During the same period in the previous year, the company posted ($0.26) EPS. The firm’s revenue for the quarter was up 16.2% compared to the same quarter last year. As a group, equities analysts anticipate that DraftKings will post 0.31 earnings per share for the current fiscal year.

Insider Buying and Selling

In other DraftKings news, Director Jocelyn Moore sold 10,759 shares of the firm’s stock in a transaction dated 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 owned 1,881 shares in the company, valued at approximately $45,238.05. This trade represents a 85.12% decrease in their position. The transaction was disclosed in a legal filing with the SEC, 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.

Hedge Funds Weigh In On DraftKings

A number of large investors have recently modified their holdings of DKNG. Ibex Investors LLC raised its holdings in DraftKings by 92.3% in the third quarter. Ibex Investors LLC now owns 125,000 shares of the company’s stock worth $2,375,000 after purchasing an additional 60,000 shares during the period. Machina Capital S.A.S. bought a new position in shares of DraftKings during the third quarter worth $224,000. Illinois Municipal Retirement Fund grew its holdings in shares of DraftKings by 2.2% in the 3rd quarter. Illinois Municipal Retirement Fund now owns 124,757 shares of the company’s stock valued at $2,370,000 after buying an additional 2,684 shares during the period. Lido Advisors LLC grew its holdings in shares of DraftKings by 6.8% in the 3rd quarter. Lido Advisors LLC now owns 19,677 shares of the company’s stock valued at $374,000 after buying an additional 1,258 shares during the period. Finally, Fulcrum Asset Management LLP grew its holdings in shares of DraftKings by 76.0% in the 3rd quarter. Fulcrum Asset Management LLP now owns 23,906 shares of the company’s stock valued at $468,000 after buying an additional 10,321 shares during the period. 37.70% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting DraftKings

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: DraftKings’ sportsbook net revenue grew 36% year over year in Q3, a bright spot amid the broader earnings disappointment. DraftKings: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Texas betting prospects could offer longer-term upside, but prediction markets are drawing scrutiny, leaving the regulatory and competitive outlook uncertain. DraftKings Sees Texas Betting Hopes Rise As Prediction Markets Draw Scrutiny
• Negative Sentiment: Q3 revenue of $1.33 billion missed expectations, and the company cut its 2026 outlook as prediction-market investment is expected to reach $650 million–$700 million. This has raised concerns about spending and earnings. Q3 Earnings Call Highlights
• Negative Sentiment: JPMorgan cut its rating from Overweight to Neutral, while several firms—including TD Cowen, Barclays, Truist, Bernstein, and BTIG—lowered price targets. Many kept Buy or equivalent ratings, but the broad reassessment underscores weaker confidence after the results. DraftKings Just Became a Show-Me Stock

DraftKings Company Profile

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.