JPMorgan Chase & Co. Issues Pessimistic Forecast for DraftKings (NASDAQ:DKNG) Stock Price

DraftKings (NASDAQ:DKNG) had its price target cut by analysts at JPMorgan Chase & Co. from $51.00 to $42.00 in a research report issued on Monday,Benzinga reports. The firm currently has an “overweight” rating on the stock. JPMorgan Chase & Co.‘s price objective would indicate a potential upside of 34.50% from the company’s previous close.

Other research analysts have also issued reports about the stock. Deutsche Bank Aktiengesellschaft set a $47.00 price target on shares of DraftKings and gave the company a “hold” rating in a research report on Friday, August 8th. Sanford C. Bernstein reduced their target price on DraftKings from $50.00 to $41.00 and set an “outperform” rating for the company in a research report on Monday. Needham & Company LLC reaffirmed a “buy” rating and issued a $52.00 price target on shares of DraftKings in a report on Monday. Truist Financial dropped their price target on DraftKings from $50.00 to $45.00 and set a “buy” rating for the company in a research report on Monday. Finally, BMO Capital Markets decreased their price objective on shares of DraftKings from $65.00 to $63.00 and set an “outperform” rating on the stock in a research report on Tuesday, November 4th. Twenty-six analysts have rated the stock with a Buy rating, three have assigned a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $49.59.

DraftKings Stock Performance

NASDAQ:DKNG traded up $0.83 during trading on Monday, reaching $31.23. The company’s stock had a trading volume of 14,308,020 shares, compared to its average volume of 11,686,676. DraftKings has a 12 month low of $26.23 and a 12 month high of $53.61. The firm has a market cap of $15.50 billion, a price-to-earnings ratio of -54.85, a price-to-earnings-growth ratio of 1.03 and a beta of 1.86. The firm has a 50 day moving average of $37.88 and a 200-day moving average of $39.48. The company has a debt-to-equity ratio of 1.82, a quick ratio of 1.34 and a current ratio of 1.34.

DraftKings (NASDAQ:DKNG) last released its earnings results on Thursday, November 6th. The company reported ($0.26) EPS for the quarter, missing analysts’ consensus estimates of $0.01 by ($0.27). The business had revenue of $1.14 billion for the quarter, compared to the consensus estimate of $1.40 billion. DraftKings had a negative return on equity of 21.47% and a negative net margin of 4.90%.The company’s revenue for the quarter was up 4.4% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($0.60) earnings per share. DraftKings has set its FY 2025 guidance at EPS. Research analysts expect that DraftKings will post 0.64 EPS for the current fiscal year.

Insider Activity

In other news, CFO Alan Wayne Ellingson sold 44,693 shares of DraftKings stock in a transaction dated Tuesday, August 19th. The stock was sold at an average price of $44.90, for a total value of $2,006,715.70. Following the transaction, the chief financial officer owned 128,131 shares in the company, valued at approximately $5,753,081.90. The trade was a 25.86% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Ryan R. Moore sold 76,390 shares of the business’s stock in a transaction dated Thursday, August 21st. The shares were sold at an average price of $45.92, for a total value of $3,507,828.80. Following the completion of the sale, the director directly owned 402 shares of the company’s stock, valued at approximately $18,459.84. This trade represents a 99.48% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 552,777 shares of company stock valued at $23,337,924. Company insiders own 47.08% of the company’s stock.

Institutional Investors Weigh In On DraftKings

Institutional investors and hedge funds have recently bought and sold shares of the business. Brown Advisory Inc. boosted its stake in shares of DraftKings by 14.6% during the 1st quarter. Brown Advisory Inc. now owns 7,600 shares of the company’s stock valued at $252,000 after purchasing an additional 968 shares in the last quarter. Helios Capital Management PTE. Ltd. lifted its holdings in DraftKings by 926.0% in the second quarter. Helios Capital Management PTE. Ltd. now owns 114,000 shares of the company’s stock worth $4,889,000 after buying an additional 102,889 shares during the period. Claro Advisors LLC lifted its holdings in DraftKings by 121.4% in the second quarter. Claro Advisors LLC now owns 39,915 shares of the company’s stock worth $1,712,000 after buying an additional 21,890 shares during the period. K.J. Harrison & Partners Inc bought a new stake in DraftKings during the 2nd quarter valued at approximately $1,081,000. Finally, Fortis Capital Advisors LLC bought a new stake in DraftKings during the 2nd quarter valued at approximately $535,000. Hedge funds and other institutional investors own 37.70% of the company’s stock.

DraftKings Company Profile

DraftKings Inc operates as a digital sports entertainment and gaming company in the United States and internationally. It provides online sports betting and casino, daily fantasy sports, media, and other consumer products, as well as retails sportsbooks. The company also engages in the design and development of sports betting and casino gaming software for online and retail sportsbooks, and iGaming operators.