DraftKings Inc. (NASDAQ:DKNG) Sees Significant Drop in Short Interest

DraftKings Inc. (NASDAQ:DKNG) saw a large drop in short interest in February. As of February 27th, there was short interest totaling 32,087,867 shares, a drop of 16.9% from the February 12th total of 38,632,527 shares. Based on an average daily volume of 13,952,102 shares, the short-interest ratio is currently 2.3 days. Approximately 12.3% of the company’s stock are short sold. Approximately 12.3% of the company’s stock are short sold. Based on an average daily volume of 13,952,102 shares, the short-interest ratio is currently 2.3 days.

Insider Buying and Selling at DraftKings

In other DraftKings news, insider Paul Liberman sold 484,417 shares of the stock in a transaction on Wednesday, March 11th. The shares were sold at an average price of $25.16, for a total transaction of $12,187,931.72. Following the transaction, the insider directly owned 213,597 shares of the company’s stock, valued at $5,374,100.52. This represents a 69.40% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider R Stanton Dodge sold 52,777 shares of the business’s 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 completion of the sale, the insider directly owned 500,000 shares of the company’s stock, valued at $16,005,000. This represents a 9.55% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 549,495 shares of company stock worth $14,166,700 over the last quarter. Insiders own 47.08% of the company’s stock.

Institutional Trading of DraftKings

Large investors have recently made changes to their positions in the business. Dagco Inc. bought a new position in shares of DraftKings in the fourth quarter worth about $26,000. Ameriflex Group Inc. lifted its holdings in DraftKings by 100.0% during the 3rd quarter. Ameriflex Group Inc. now owns 810 shares of the company’s stock worth $30,000 after buying an additional 405 shares in the last quarter. Root Financial Partners LLC bought a new position in DraftKings in the 3rd quarter valued at $33,000. Asset Dedication LLC bought a new position in DraftKings in the 3rd quarter valued at $37,000. Finally, Montag A & Associates Inc. increased its stake in shares of DraftKings by 82.5% in the 4th quarter. Montag A & Associates Inc. now owns 1,106 shares of the company’s stock valued at $38,000 after buying an additional 500 shares during the period. Institutional investors own 37.70% of the company’s stock.

Analysts Set New Price Targets

A number of research firms recently weighed in on DKNG. BTIG Research set a $35.00 target price on DraftKings in a research report on Tuesday, March 3rd. Argus lowered DraftKings from a “buy” rating to a “hold” rating in a report on Tuesday. Bank of America lowered their price objective on DraftKings from $37.50 to $30.00 and set a “neutral” rating on the stock in a research report on Friday, February 13th. Stifel Nicolaus cut their target price on DraftKings from $44.00 to $40.00 and set a “buy” rating for the company in a research note on Tuesday, February 17th. Finally, Barclays reiterated an “overweight” rating on shares of DraftKings in a research note on Tuesday, March 3rd. Twenty-five analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $37.09.

DraftKings Price Performance

Shares of DKNG traded up $0.32 during trading hours on Tuesday, hitting $25.22. The stock had a trading volume of 14,165,826 shares, compared to its average volume of 15,906,561. DraftKings has a 52 week low of $21.01 and a 52 week high of $48.78. The stock has a market capitalization of $12.43 billion, a price-to-earnings ratio of -630.50, a P/E/G ratio of 1.06 and a beta of 1.67. The company’s fifty day moving average is $27.66 and its two-hundred day moving average is $32.99. The company has a debt-to-equity ratio of 2.91, a current ratio of 1.03 and a quick ratio of 1.03.

Key Stories Impacting DraftKings

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: Bernstein reiterated an “Outperform” and nudged its target higher, reinforcing some analyst conviction about DraftKings’ growth pathway. Bernstein Remains Bullish on DraftKings
• Positive Sentiment: DraftKings’ expanding relationship with ESPN and commentary around potential federal rule changes could broaden distribution and product reach if regulatory shifts favor the company. DraftKings Weighs Federal Rule Shift As ESPN Tie Up Deepens
• Neutral Sentiment: Brokerage consensus remains about a “Moderate Buy,” indicating steady analyst support but not unanimous enthusiasm; this keeps expectations measured. DraftKings Receives Average Recommendation of “Moderate Buy”
• Neutral Sentiment: Market commentary is debating whether current pricing already reflects DraftKings’ recent volatility and growth prospects — short?term gains contrast with weaker YTD and 1?yr returns. Is DraftKings Pricing Reflect Its Recent Volatility And Growth Prospects
• Negative Sentiment: Argus downgraded DraftKings from “Buy” to “Hold,” a direct negative signal that can reduce demand from conviction?driven investors. Argus Downgrades DraftKings
• Negative Sentiment: UBS cut its price target from $53 to $43 (while keeping a buy rating), trimming implied upside and likely tempering enthusiasm from target?sensitive investors. UBS Lowers DraftKings Price Target
• Negative Sentiment: Insider sale: Director Jocelyn Moore sold 2,150 shares (about $55k at ~$25.60), cutting her stake by ~60% — an insider disposition investors often view as a negative signal. Director Jocelyn Moore Sells Shares

DraftKings Company Profile

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.