DraftKings (NASDAQ:DKNG) Reaches New 1-Year Low on Analyst Downgrade

DraftKings Inc. (NASDAQ:DKNG) hit a new 52-week low during mid-day trading on Friday after Benchmark lowered their price target on the stock from $37.00 to $29.00. Benchmark currently has a buy rating on the stock. DraftKings traded as low as $21.01 and last traded at $22.1860, with a volume of 20782520 shares. The stock had previously closed at $25.16.

A number of other equities analysts have also issued reports on the company. UBS Group reaffirmed a “buy” rating on shares of DraftKings in a research note on Wednesday, January 7th. Northland Securities upgraded DraftKings from an “under perform” rating to a “market perform” rating in a report on Monday, November 10th. Guggenheim decreased their target price on DraftKings from $45.00 to $42.00 and set a “buy” rating for the company in a research note on Thursday, January 29th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of DraftKings in a report on Wednesday, January 21st. Finally, BTIG Research boosted their price target on shares of DraftKings from $42.00 to $45.00 and gave the stock a “buy” rating in a research report on Friday, December 5th. Twenty-three research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $44.41.

Insider Buying and Selling at DraftKings

In related news, insider R Stanton Dodge sold 52,777 shares of DraftKings stock in a transaction dated Tuesday, January 20th. The stock was sold at an average price of $32.01, for a total value of $1,689,391.77. Following the transaction, the insider owned 500,000 shares of the company’s stock, valued at approximately $16,005,000. This trade represents a 9.55% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 51.19% of the stock is owned by company insiders.

Key Headlines Impacting DraftKings

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: Revenue and profitability progress — DraftKings reported 43% year?over?year revenue growth and said it delivered record revenue and adjusted EBITDA, highlighting continuing top?line momentum and improving margins. DraftKings Reports Fourth Quarter Revenue Growth of 43%
• Positive Sentiment: Revenue slightly ahead of estimates — Q4 revenue came in at $1.99B versus ~$1.96B consensus, reinforcing the growth story despite other weaknesses. DraftKings Press Release / Slide Deck
• Neutral Sentiment: Street commentary and previews highlighted mixed expectations into the print; several outlets ran pre?earnings pieces noting volatility heading into results. Benzinga
• Negative Sentiment: EPS miss — DraftKings reported $0.36 EPS for Q4, missing consensus (~$0.45), which disappointed investors expecting a stronger beat. DraftKings (DKNG) Misses Q4 Earnings and Revenue Estimates
• Negative Sentiment: Softer FY?2026 guidance — Management set FY?2026 revenue guidance of roughly $6.5B–$6.9B versus a ~ $7.3B consensus, signaling slower near?term growth than the Street expected. DraftKings Press Release / Slide Deck
• Negative Sentiment: Analyst target cuts — Benchmark lowered its target to $29 (still a Buy) and Bank of America cut to $30 and moved to Neutral, removing some prior upside for the stock. Benzinga
• Neutral Sentiment: Short?interest entries in feeds look noisy/incorrect (reported zeros); no clear actionable signal from short?data in the releases provided.

Hedge Funds Weigh In On DraftKings

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in DKNG. Vanguard Group Inc. lifted its stake in DraftKings by 3.1% in the 4th quarter. Vanguard Group Inc. now owns 44,758,204 shares of the company’s stock worth $1,542,368,000 after acquiring an additional 1,354,457 shares in the last quarter. Capital World Investors increased its holdings in shares of DraftKings by 181.4% in the 4th quarter. Capital World Investors now owns 18,626,429 shares of the company’s stock valued at $641,867,000 after purchasing an additional 12,008,357 shares during the period. Viking Global Investors LP purchased a new stake in shares of DraftKings in the third quarter worth approximately $561,125,000. AQR Capital Management LLC lifted its position in shares of DraftKings by 63.5% in the third quarter. AQR Capital Management LLC now owns 11,685,672 shares of the company’s stock worth $437,044,000 after purchasing an additional 4,538,007 shares in the last quarter. Finally, Geode Capital Management LLC boosted its holdings in shares of DraftKings by 2.1% during the fourth quarter. Geode Capital Management LLC now owns 9,494,860 shares of the company’s stock worth $326,394,000 after purchasing an additional 192,160 shares during the period. Institutional investors and hedge funds own 37.70% of the company’s stock.

DraftKings Price Performance

The stock has a market capitalization of $10.98 billion, a PE ratio of -38.72, a P/E/G ratio of 0.52 and a beta of 1.67. The company has a quick ratio of 1.09, a current ratio of 1.10 and a debt-to-equity ratio of 2.51. The stock’s 50-day moving average is $32.46 and its 200 day moving average is $36.41.

About DraftKings

DraftKings Inc is a leading digital sports entertainment and gaming company specializing in daily fantasy sports, sports betting and iGaming products. The company provides an integrated platform where users can participate in daily fantasy contests, place wagers on professional sports events, and enjoy a range of online casino-style games. DraftKings’ proprietary technology supports real-time odds, live scoring and advanced analytics to enhance the user experience across mobile and desktop applications.

Founded in 2012 by co-founders Jason Robins, Matthew Kalish and Paul Liberman, DraftKings began as a daily fantasy sports provider and rapidly expanded into regulated sports betting following legislative changes in the United States.