DraftKings (NASDAQ:DKNG) Stock Gets Price Target Trim from TD Cowen

DraftKings (NASDAQ:DKNG) had its price target decreased by TD Cowen from $35.00 to $25.00 in a report issued on Monday,Benzinga reports. TD Cowen currently has a buy rating on the stock.

Several other equities research analysts have also recently weighed in on the company. Mizuho decreased their target price on DraftKings from $45.00 to $35.00 and set an “outperform” rating for the company in a research note on Monday. Guggenheim dropped 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. Barclays cut their price objective on shares of DraftKings from $34.00 to $27.00 and set an “overweight” rating on the stock in a report on Monday. UBS Group downgraded shares of DraftKings from a “buy” rating to a “neutral” rating and reduced their price objective for the stock from $48.00 to $22.00 in a research report on Monday. Finally, Bank of America restated a “buy” rating on shares of DraftKings in a research report on Friday, November 6th. One research analyst has rated the stock with a Strong Buy rating, twenty-five have assigned a Buy rating, ten have assigned a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $27.61.

DraftKings Stock Up 1.4%

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

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

Insider Activity

In related news, Director Jocelyn Moore sold 10,759 shares of the company’s stock in a transaction dated Wednesday, August 19th. The stock was 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 $45,238.05. This represents a 85.12% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Alan Ellingson acquired 18,908 shares of the firm’s stock in a transaction dated Monday, November 9th. The stock was purchased at an average cost of $18.51 per share, with a total value of $349,987.08. Following the completion of the acquisition, the chief financial officer directly owned 214,692 shares of the company’s stock, valued at approximately $3,973,948.92. This trade represents a 9.66% increase in their position. The SEC filing for this purchase provides additional information. 47.18% of the stock is currently owned by insiders.

Hedge Funds Weigh In On DraftKings

A number of institutional investors have recently modified their holdings of the business. Janus Henderson Group PLC increased its holdings in shares of 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 acquiring an additional 2,351,790 shares during the period. Spruce House Investment Management LLC raised its position 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. Swiss National Bank boosted its stake in DraftKings by 7.4% during the 1st quarter. Swiss National Bank now owns 1,314,864 shares of the company’s stock worth $28,427,000 after purchasing an additional 90,400 shares during the period. Bank of New York Mellon Corp acquired a new stake in DraftKings during the 2nd quarter worth $24,014,000. Finally, Quantinno Capital Management LP boosted its stake in DraftKings by 273.9% during the 1st quarter. Quantinno Capital Management LP now owns 898,241 shares of the company’s stock worth $19,420,000 after purchasing an additional 658,006 shares during the period. 37.70% of the stock is owned by institutional investors and hedge funds.

Top DraftKings Stories

Investors following DKNG have been watching these stories:

• 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.