DraftKings Inc. (NASDAQ:DKNG) Stock Has Average Price Target of $32.98

Shares of DraftKings Inc. (NASDAQ:DKNG) have received an average rating of “Moderate Buy” from the forty analysts that are covering the firm, MarketBeat.com reports. Three investment analysts have rated the stock with a sell recommendation, six have assigned a hold recommendation, thirty have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1 year target price among brokers that have updated their coverage on the stock in the last year is $33.01.

A number of brokerages have recently issued reports on DKNG. Zacks Research cut DraftKings from a “hold” rating to a “strong sell” rating in a report on Tuesday, October 13th. Northland Securities set a $28.00 price target on DraftKings in a research note on Monday, August 10th. Truist Financial lowered their price target on DraftKings from $29.00 to $26.00 and set a “buy” rating on the stock in a research report on Tuesday, October 20th. Guggenheim dropped their price objective on DraftKings from $33.00 to $30.00 and set a “buy” rating for the company in a research note on Wednesday, October 7th. Finally, Wolfe Research initiated coverage on DraftKings in a report on Wednesday, September 2nd. They set an “outperform” rating and a $40.00 price objective for the company.

DraftKings Trading Up 2.1%

Shares of DKNG stock opened at $20.72 on Tuesday. DraftKings has a 1 year low of $18.35 and a 1 year high of $36.98. The firm’s fifty day simple moving average is $21.95 and its 200 day simple moving average is $24.43. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 3.22.

DraftKings (NASDAQ:DKNG) last issued its quarterly earnings results on Friday, August 7th. The company reported $0.09 earnings per share for the quarter, beating analysts’ consensus estimates of $0.02 by $0.07. DraftKings had a negative net margin of 2.68% and a negative return on equity of 11.26%. The firm had revenue of $1.44 billion during the quarter, compared to the consensus estimate of $1.51 billion. During the same period in the prior year, the firm earned $0.30 EPS. The business’s revenue was down 4.6% on a year-over-year basis. Analysts expect that DraftKings will post 0.36 earnings per share for the current fiscal year.

Trending Headlines about DraftKings

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: DraftKings is viewed more favorably than PENN Entertainment, with analysts citing stronger digital growth prospects, customer acquisition and product innovation. These advantages could support market-share gains and long-term revenue growth. DKNG vs. PENN: Which Sports Betting Stock Is the Better Buy Now?
• Positive Sentiment: The company sees an opportunity in crypto-related event contracts, potentially giving DraftKings another product category and a way to expand engagement and revenue. However, the opportunity remains dependent on regulation and execution. DraftKings Sees Opportunity With Crypto Event Contracts
• Neutral Sentiment: Amplify’s proposed PROS ETF would combine publicly traded sports companies with as much as 15% in private sports assets. DraftKings could benefit from additional investor exposure to sports-related equities, though the proposal does not represent a direct corporate development for the company. Want to Own a Piece of Professional Sports? This ETF Could Be Your Ticket
• Neutral Sentiment: DraftKings was included in a roundup of casino stocks to follow, but the article provided no specific new company catalyst or material change to its outlook. Casino Stocks To Follow Now
• Negative Sentiment: Pre-earnings analysis warns that DraftKings lacks the combination of earnings and estimate-revision trends typically associated with a likely earnings beat. This raises the risk of disappointing guidance or renewed pressure on the stock when results are released next week. DraftKings May Report Negative Earnings
• Negative Sentiment: CEO commentary warning about gambling addiction among children highlights responsible-gaming and reputational risks. Increased regulatory scrutiny or concerns about underage gambling could raise compliance costs and weigh on investor sentiment. DraftKings CEO Has a Gambling Addiction Warning About Kids

Insider Activity

In related news, Director Jocelyn Moore sold 10,759 shares of DraftKings stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $24.05, for a total transaction of $258,753.95. Following the completion of the transaction, the director directly owned 1,881 shares of the company’s stock, valued at $45,238.05. This trade represents a 85.12% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 47.18% of the stock is owned by company insiders.

Institutional Trading of DraftKings

Hedge funds have recently modified their holdings of the company. Janus Henderson Group PLC grew its holdings in DraftKings by 9.3% during the 1st quarter. Janus Henderson Group PLC now owns 27,665,699 shares of the company’s stock worth $588,288,000 after acquiring an additional 2,351,790 shares during the period. Spruce House Investment Management LLC lifted its stake in shares of 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 period. Swiss National Bank lifted its stake in shares of DraftKings by 7.4% in the 1st quarter. Swiss National Bank now owns 1,314,864 shares of the company’s stock valued at $28,427,000 after purchasing an additional 90,400 shares during the period. Bank of New York Mellon Corp bought a new position in shares of DraftKings in the 2nd quarter worth $24,014,000. Finally, Quantinno Capital Management LP boosted its position in shares of DraftKings by 273.9% in 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 last quarter. Institutional investors and hedge funds own 37.70% of the company’s stock.

DraftKings Company Profile

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.