DraftKings (NASDAQ:DKNG) Raised to “Hold” at Zacks Research

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

Other research analysts have also issued research reports about the company. Guggenheim cut their price objective on DraftKings from $30.00 to $28.00 and set a “buy” rating for the company in a research report on Monday. UBS Group downgraded DraftKings from a “buy” rating to a “neutral” rating and decreased their target price for the stock from $48.00 to $22.00 in a research report on Monday. Morgan Stanley decreased their target price on DraftKings from $36.00 to $31.00 and set an “overweight” rating on the stock in a research report on Monday, October 19th. Northland Securities set a $28.00 price target on DraftKings in a research note on Monday, August 10th. Finally, Moffett Nathanson restated a “neutral” rating and set a $22.00 price target on shares of DraftKings in a report on Thursday, October 22nd. One research analyst has rated the stock with a Strong Buy rating, twenty-five have given a Buy rating, eleven have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $27.61.

DraftKings Trading Down 2.6%

Shares of NASDAQ:DKNG opened at $19.12 on Wednesday. The company has a debt-to-equity ratio of 12.21, a quick ratio of 1.02 and a current ratio of 0.99. The firm has a fifty day moving average price of $21.10 and a 200 day moving average price of $23.82. DraftKings has a fifty-two week low of $16.55 and a fifty-two week high of $36.98.

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). The company had revenue of $1.33 billion for the quarter, compared to analysts’ expectations of $1.39 billion. DraftKings had a negative net margin of 5.91% and a negative return on equity of 43.92%. The business’s revenue was up 16.2% on a year-over-year basis. During the same period in the previous year, the business posted ($0.26) earnings per share. On average, equities analysts forecast that DraftKings will post 0.31 EPS for the current fiscal year.

Insider Buying and Selling

In other DraftKings news, Director Gregory Wendt bought 5,000 shares of the company’s stock in a transaction on Wednesday, November 11th. The stock was acquired at an average price of $19.76 per share, for a total transaction of $98,800.00. Following the completion of the transaction, the director directly owned 22,920 shares of the company’s stock, valued at approximately $452,899.20. This represents a 27.90% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Alan Ellingson bought 18,908 shares of the business’s stock in a transaction dated Monday, November 9th. The shares were acquired at an average cost of $18.51 per share, for a total transaction of $349,987.08. Following the purchase, the chief financial officer owned 214,692 shares of the company’s stock, valued at approximately $3,973,948.92. The trade was a 9.66% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 47.18% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On DraftKings

A number of institutional investors and hedge funds have recently modified their holdings of the business. Spruce House Investment Management LLC lifted its position in shares of DraftKings by 129.6% during the first quarter. Spruce House Investment Management LLC now owns 9,650,000 shares of the company’s stock worth $208,633,000 after purchasing an additional 5,446,166 shares during the last quarter. Janus Henderson Group PLC raised its stake in shares of DraftKings by 9.3% during the first quarter. Janus Henderson Group PLC now owns 27,665,699 shares of the company’s stock valued at $588,288,000 after acquiring an additional 2,351,790 shares in the last quarter. Bank of New York Mellon Corp bought a new stake in shares of DraftKings during the second quarter valued at approximately $24,014,000. Renaissance Technologies LLC purchased a new stake in shares of DraftKings in the first quarter valued at approximately $17,660,000. Finally, Quantinno Capital Management LP boosted its holdings in shares of DraftKings by 273.9% in the first quarter. Quantinno Capital Management LP now owns 898,241 shares of the company’s stock valued at $19,420,000 after purchasing an additional 658,006 shares during the period. 37.70% of the stock is owned by institutional investors.

DraftKings News Summary

These are some of the DKNG news items that stood out recently:

• Positive Sentiment: DraftKings is targeting roughly $650 million to $750 million in Predictions revenue in 2027, citing customer engagement and retention. A report also says the exchange’s revenue margins are approaching sportsbook levels, which could strengthen the business case if the projections are achieved. Predictions revenue target
• Negative Sentiment: Wells Fargo downgraded DraftKings, and several other firms reportedly cut ratings or price targets. The repeated analyst caution adds pressure to expectations for the shares. Wells Fargo downgrade
• Negative Sentiment: Commentary highlighted the competitive threat from prediction markets and questioned their economics, while concerns about DraftKings’ investment costs and outlook add to uncertainty around whether the new business can deliver profitable growth. Prediction-market competition

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.