DraftKings (NASDAQ:DKNG) Shares Down 4.7% Following Analyst Downgrade

DraftKings Inc. (NASDAQ:DKNG)’s stock price fell 4.7% during trading on Tuesday after Mizuho lowered their price target on the stock from $58.00 to $54.00. Mizuho currently has an outperform rating on the stock. DraftKings traded as low as $33.29 and last traded at $33.33. 7,270,504 shares traded hands during trading, a decline of 31% from the average session volume of 10,526,204 shares. The stock had previously closed at $34.98.

Several other research analysts have also commented on DKNG. Susquehanna restated a “positive” rating and issued a $64.00 price objective on shares of DraftKings in a report on Friday, August 8th. Deutsche Bank Aktiengesellschaft set a $47.00 price target on shares of DraftKings and gave the stock a “hold” rating in a research note on Friday, August 8th. Truist Financial increased their price target on shares of DraftKings from $50.00 to $55.00 and gave the stock a “buy” rating in a research note on Wednesday, July 16th. Northland Securities reiterated an “under perform” rating and issued a $33.00 price target (down from $53.00) on shares of DraftKings in a research note on Wednesday, October 1st. Finally, UBS Group decreased their price target on shares of DraftKings from $58.00 to $56.00 and set a “buy” rating for the company in a research note on Wednesday, September 24th. Twenty-six equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, DraftKings has a consensus rating of “Moderate Buy” and an average price target of $53.64.

Insider Buying and Selling at DraftKings

In other DraftKings news, Director Jocelyn Moore sold 4,861 shares of the firm’s stock in a transaction dated Wednesday, August 13th. The shares were sold at an average price of $43.21, for a total transaction of $210,043.81. Following the completion of the sale, the director directly owned 1,461 shares in the company, valued at approximately $63,129.81. This trade represents a 76.89% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Ryan R. Moore sold 76,390 shares of the firm’s stock in a transaction dated Thursday, August 21st. The shares were sold at an average price of $45.92, for a total transaction of $3,507,828.80. Following the sale, the director owned 402 shares of the company’s stock, valued at approximately $18,459.84. This represents a 99.48% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 658,331 shares of company stock worth $29,285,365 in the last 90 days. Insiders own 47.08% of the company’s stock.

Institutional Trading of DraftKings

A number of institutional investors and hedge funds have recently bought and sold shares of DKNG. FNY Investment Advisers LLC purchased a new stake in shares of DraftKings during the 1st quarter valued at about $26,000. Smallwood Wealth Investment Management LLC bought a new stake in shares of DraftKings in the first quarter worth approximately $27,000. GPS Wealth Strategies Group LLC grew its stake in shares of DraftKings by 197.9% in the first quarter. GPS Wealth Strategies Group LLC now owns 849 shares of the company’s stock worth $28,000 after acquiring an additional 564 shares during the period. Bank of Jackson Hole Trust bought a new stake in shares of DraftKings in the first quarter worth approximately $31,000. Finally, TD Private Client Wealth LLC grew its stake in shares of DraftKings by 54.4% in the second quarter. TD Private Client Wealth LLC now owns 800 shares of the company’s stock worth $34,000 after acquiring an additional 282 shares during the period. 37.70% of the stock is currently owned by institutional investors.

DraftKings Price Performance

The business’s 50 day moving average price is $43.85 and its 200 day moving average price is $39.73. The stock has a market capitalization of $16.36 billion, a P/E ratio of -50.69, a price-to-earnings-growth ratio of 0.92 and a beta of 1.99. The company has a debt-to-equity ratio of 1.82, a current ratio of 1.34 and a quick ratio of 1.34.

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

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.