DraftKings (NASDAQ:DKNG) Reaches New 1-Year Low Following Weak Earnings

DraftKings Inc. (NASDAQ:DKNG)’s share price hit a new 52-week low during mid-day trading on Friday after the company announced weaker than expected quarterly earnings. The stock traded as low as $17.11 and last traded at $16.9390, with a volume of 1,890,427 shares traded. The stock had previously closed at $23.52.

The company reported ($0.53) EPS for the quarter, missing the consensus estimate 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 during the quarter, compared to the consensus estimate of $1.39 billion. During the same period in the previous year, the firm posted ($0.26) EPS. The company’s quarterly revenue was up 16.2% compared to the same quarter last year.

Trending Headlines about DraftKings

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: DraftKings said its prediction-markets business could generate up to $750 million in revenue in 2027, offering a potential longer-term growth opportunity, though the business requires investment. Article: DraftKings Stock Dives on Q3 Miss, Lower Guidance
• Neutral Sentiment: Q3 revenue rose 16.2% year over year to $1.33 billion, showing continued growth, but fell short of analysts’ $1.39 billion estimate. Article: DraftKings misses Q3 2026 revenue estimates
• Negative Sentiment: The company reported a loss of $0.53 per share, wider than the $0.41-per-share loss analysts expected and the $0.26 loss a year earlier. Article: DraftKings earnings results
• Negative Sentiment: DraftKings cut its 2026 revenue forecast to $6.35 billion–$6.55 billion from $6.5 billion–$6.9 billion. The new midpoint is below analysts’ consensus, raising concerns about near-term growth. Article: DraftKings Cuts Outlook as It Pours More Money Into Prediction Markets

Wall Street Analyst Weigh In

Several research analysts have recently commented on the stock. Bank of America upgraded shares of DraftKings from a “neutral” rating to a “buy” rating and set a $27.00 price target on the stock in a research note on Monday, October 5th. Morgan Stanley reduced their price objective on shares of DraftKings from $36.00 to $31.00 and set an “overweight” rating for the company in a research note on Monday, October 19th. Deutsche Bank Aktiengesellschaft upped their price objective on shares of DraftKings from $26.00 to $28.00 and gave the stock a “hold” rating in a report on Thursday, July 9th. TD Cowen upped their price objective on shares of DraftKings from $30.00 to $35.00 and gave the stock a “buy” rating in a report on Friday, July 10th. Finally, Northland Securities set a $28.00 target price on shares of DraftKings in a research report on Monday, August 10th. 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 issued a Sell rating to the company’s stock. According to data from MarketBeat, DraftKings presently has a consensus rating of “Moderate Buy” and an average price target of $32.79.

Insider Transactions at DraftKings

In related 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 transaction, the director owned 1,881 shares in the company, valued at $45,238.05. This trade represents a 85.12% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 47.18% of the company’s stock.

Hedge Funds Weigh In On DraftKings

Several large investors have recently made changes to their positions in DKNG. CoreCap Advisors LLC lifted its position in shares of DraftKings by 336.5% during the second quarter. CoreCap Advisors LLC now owns 1,148 shares of the company’s stock worth $29,000 after purchasing an additional 885 shares in the last quarter. Basecamp Wealth Advisors LLC grew its stake in shares of DraftKings by 3,547.1% during the first quarter. Basecamp Wealth Advisors LLC now owns 1,240 shares of the company’s stock valued at $27,000 after purchasing an additional 1,206 shares during the last quarter. Ascentis Independent Advisors bought a new stake in shares of DraftKings during the first quarter valued at approximately $27,000. Heritage Family Offices LLP acquired a new stake in shares of DraftKings in the third quarter valued at approximately $44,000. Finally, Mirae Asset Global Investments Co. Ltd. bought a new position in DraftKings in the 3rd quarter worth approximately $48,000. Institutional investors and hedge funds own 37.70% of the company’s stock.

DraftKings Stock Performance

The firm has a fifty day simple moving average of $21.62 and a 200-day simple moving average of $24.13. 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 stock has a market cap of $8.39 billion, a price-to-earnings ratio of -44.30, a P/E/G ratio of 3.03 and a beta of 1.65.

About DraftKings

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.