DraftKings (NASDAQ:DKNG) Price Target Lowered to $56.00 at UBS Group

DraftKings (NASDAQ:DKNG) had its target price reduced by UBS Group from $58.00 to $56.00 in a research note released on Wednesday, Marketbeat.com reports. They currently have a buy rating on the stock.

Several other equities analysts also recently issued reports on the stock. Barclays reaffirmed an “overweight” rating and set a $54.00 price objective (up from $51.00) on shares of DraftKings in a report on Friday, August 8th. JMP Securities reduced their price target on shares of DraftKings from $54.00 to $50.00 and set a “market outperform” rating for the company in a research report on Thursday, June 5th. Truist Financial lifted their price objective on DraftKings from $50.00 to $55.00 and gave the stock a “buy” rating in a report on Wednesday, July 16th. Sanford C. Bernstein initiated coverage on DraftKings in a research note on Wednesday, June 4th. They set an “outperform” rating and a $46.00 price objective for the company. Finally, JPMorgan Chase & Co. assumed coverage on DraftKings in a research report on Monday, June 23rd. They issued an “overweight” rating and a $50.00 target price on the stock. Twenty-five research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, DraftKings has a consensus rating of “Moderate Buy” and an average target price of $55.15.

DraftKings Stock Down 0.7%

Shares of DKNG opened at $42.95 on Wednesday. The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 1.82. DraftKings has a 12 month low of $29.64 and a 12 month high of $53.61. The stock’s 50 day moving average is $45.05 and its two-hundred day moving average is $39.76. The firm has a market cap of $21.32 billion, a P/E ratio of -66.08, a PEG ratio of 1.03 and a beta of 1.73.

DraftKings (NASDAQ:DKNG) last announced its earnings results on Thursday, August 7th. The company reported $0.30 earnings per share for the quarter, topping the consensus estimate of $0.16 by $0.14. DraftKings had a negative return on equity of 30.06% and a negative net margin of 5.63%.The business had revenue of $1.51 billion during the quarter, compared to the consensus estimate of $1.39 billion. During the same period in the prior year, the company posted $0.12 EPS. The business’s quarterly revenue was up 36.9% on a year-over-year basis. DraftKings has set its FY 2025 guidance at EPS. Analysts predict that DraftKings will post 0.64 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Jocelyn Moore sold 4,861 shares of the business’s stock in a transaction that occurred on Wednesday, August 13th. The stock was sold at an average price of $43.21, for a total transaction of $210,043.81. Following the transaction, the director directly owned 1,461 shares in the company, valued at $63,129.81. The trade was a 76.89% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider R Stanton Dodge sold 105,554 shares of the stock in a transaction that occurred on Tuesday, August 5th. The shares were sold at an average price of $44.60, for a total value of $4,707,708.40. Following the completion of the sale, the insider directly owned 500,000 shares of the company’s stock, valued at approximately $22,300,000. This represents a 17.43% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 658,331 shares of company stock worth $29,285,365. 51.19% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Norges Bank acquired a new position in DraftKings in the second quarter valued at approximately $362,554,000. AQR Capital Management LLC raised its position in DraftKings by 2,138.9% in the first quarter. AQR Capital Management LLC now owns 4,696,244 shares of the company’s stock valued at $155,962,000 after purchasing an additional 4,486,488 shares during the period. Brown Advisory Inc. raised its position in DraftKings by 53,272.1% in the second quarter. Brown Advisory Inc. now owns 4,056,280 shares of the company’s stock valued at $173,974,000 after purchasing an additional 4,048,680 shares during the period. Eminence Capital LP lifted its stake in shares of DraftKings by 195.2% in the 1st quarter. Eminence Capital LP now owns 5,178,083 shares of the company’s stock valued at $171,964,000 after purchasing an additional 3,423,909 shares during the last quarter. Finally, Nuveen LLC purchased a new position in shares of DraftKings during the 1st quarter worth $107,739,000. Hedge funds and other institutional investors own 37.70% of the company’s stock.

About DraftKings

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.