DraftKings (NASDAQ:DKNG) Stock Gets Price Target Cut from Truist Financial

DraftKings (NASDAQ:DKNG) had its target price reduced by Truist Financial from $26.00 to $22.00 in a research report sent to investors on Monday morning,Benzinga reports. Truist Financial currently has a buy rating on the stock.

Several other equities analysts have also issued reports on DKNG. Barclays decreased their target price on DraftKings from $35.00 to $34.00 and set an “overweight” rating for the company in a research report on Monday, August 10th. Stifel Nicolaus lowered DraftKings from a “buy” rating to a “hold” rating and dropped their target price for the company from $32.00 to $21.00 in a research report on Monday. BTIG Research cut their price target on shares of DraftKings from $26.00 to $23.00 and set a “buy” rating on the stock in a research report on Monday. Citigroup dropped their price objective on DraftKings from $32.00 to $28.00 and set a “buy” rating on the stock in a research note on Monday, October 12th. Finally, Zacks Research downgraded shares of DraftKings from a “hold” rating to a “strong sell” rating in a research note on Tuesday, October 13th. One investment analyst has rated the stock with a Strong Buy rating, twenty-five have given a Buy rating, ten have assigned a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, DraftKings presently has an average rating of “Moderate Buy” and an average price target of $27.61.

DraftKings Stock Performance

NASDAQ DKNG opened at $19.64 on Monday. The company’s 50-day simple moving average is $21.20 and its 200 day simple moving average is $23.88. The company has a quick ratio of 1.02, a current ratio of 0.99 and a debt-to-equity ratio of 12.21. The stock has a market cap of $9.79 billion, a P/E ratio of -24.55, a PEG ratio of 2.54 and a beta of 1.65. DraftKings has a twelve month low of $16.55 and a twelve month high of $36.98.

DraftKings (NASDAQ:DKNG) last announced 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). The firm had revenue of $1.33 billion during the quarter, compared to the consensus estimate of $1.39 billion. DraftKings had a negative net margin of 5.91% and a negative return on equity of 43.92%. The firm’s quarterly revenue was up 16.2% on a year-over-year basis. During the same quarter in the previous year, the business posted ($0.26) earnings per share. As a group, research analysts forecast that DraftKings will post 0.31 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, Director Jocelyn Moore sold 10,759 shares of the business’s stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $24.05, for a total transaction of $258,753.95. Following the sale, the director directly owned 1,881 shares in the company, valued at approximately $45,238.05. The trade was a 85.12% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Alan Ellingson purchased 18,908 shares of the firm’s stock in a transaction on Monday, November 9th. The stock was acquired at an average price of $18.51 per share, with a total value of $349,987.08. Following the completion of the transaction, the chief financial officer owned 214,692 shares in the company, valued at approximately $3,973,948.92. This trade represents a 9.66% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 47.18% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Private Advisor Group LLC boosted its position in DraftKings by 11.0% during the third quarter. Private Advisor Group LLC now owns 74,437 shares of the company’s stock valued at $1,414,000 after acquiring an additional 7,356 shares during the last quarter. Edgestream Partners L.P. purchased a new position in DraftKings during the 3rd quarter worth $870,000. HighTower Advisors LLC lifted its holdings in DraftKings by 5.0% during the third quarter. HighTower Advisors LLC now owns 134,098 shares of the company’s stock worth $2,548,000 after acquiring an additional 6,403 shares during the period. Ibex Investors LLC grew its position in shares of DraftKings by 92.3% during the 3rd quarter. Ibex Investors LLC now owns 125,000 shares of the company’s stock valued at $2,375,000 after acquiring an additional 60,000 shares during the period. Finally, Machina Capital S.A.S. bought a new position in DraftKings during the third quarter worth about $224,000. Institutional investors and hedge funds own 37.70% of the company’s stock.

Key Stories Impacting DraftKings

Investors following DKNG have been watching these stories:

• Positive Sentiment: CFO Alan Ellingson bought 18,908 shares for about $350,000, increasing his holdings by 9.66%. The purchase may signal confidence in the business, although it does not address concerns about profitability or the outlook. Insider purchase report
• 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: 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

DraftKings Company Profile

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.