DraftKings (NASDAQ:DKNG) Downgraded to Neutral Rating by Bank of America

Bank of America lowered shares of DraftKings (NASDAQ:DKNG) from a buy rating to a neutral rating in a research note released on Tuesday, MarketBeat reports. Bank of America currently has $35.00 price target on the stock, down from their previous price target of $48.00.

Several other research firms have also recently issued reports on DKNG. Northland Securities set a $30.00 price objective on DraftKings in a research report on Monday, October 13th. Truist Financial lowered their price objective on DraftKings from $55.00 to $50.00 and set a “buy” rating for the company in a research report on Tuesday, October 21st. Jefferies Financial Group set a $52.00 price target on DraftKings in a research note on Monday, October 6th. Susquehanna dropped their price target on DraftKings from $64.00 to $59.00 and set a “positive” rating on the stock in a research note on Tuesday, October 14th. Finally, JMP Securities dropped their price target on DraftKings from $54.00 to $51.00 and set a “market outperform” rating on the stock in a research note on Wednesday, October 1st. Twenty-six investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, DraftKings presently has a consensus rating of “Moderate Buy” and a consensus target price of $52.34.

DraftKings Trading Down 6.4%

NASDAQ:DKNG opened at $28.61 on Tuesday. The stock has a 50-day simple moving average of $39.03 and a 200-day simple moving average of $39.58. The stock has a market cap of $14.20 billion, a P/E ratio of -44.02, a P/E/G ratio of 0.95 and a beta of 1.86. DraftKings has a 1 year low of $28.38 and a 1 year high of $53.61. The company has a debt-to-equity ratio of 1.82, a quick ratio of 1.34 and a current ratio of 1.34.

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

Insider Activity at DraftKings

In other DraftKings news, insider R Stanton Dodge sold 52,777 shares of the stock in a transaction that occurred on Friday, October 17th. The stock was sold at an average price of $34.57, for a total transaction of $1,824,500.89. Following the completion of the sale, the insider directly owned 500,000 shares of the company’s stock, valued at approximately $17,285,000. This trade represents a 9.55% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Alan Wayne Ellingson sold 44,693 shares of the stock in a transaction that occurred on Tuesday, August 19th. The stock was sold at an average price of $44.90, for a total value of $2,006,715.70. Following the sale, the chief financial officer directly owned 128,131 shares of the company’s stock, valued at $5,753,081.90. The trade was a 25.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 500,000 shares of company stock worth $21,807,391 in the last ninety days. Company insiders own 47.08% of the company’s stock.

Institutional Trading of DraftKings

A number of hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. lifted its position in DraftKings by 1.6% during the 2nd quarter. Vanguard Group Inc. now owns 43,761,344 shares of the company’s stock worth $1,876,924,000 after acquiring an additional 670,884 shares during the period. T. Rowe Price Investment Management Inc. lifted its position in DraftKings by 0.7% during the 1st quarter. T. Rowe Price Investment Management Inc. now owns 18,700,071 shares of the company’s stock worth $621,030,000 after acquiring an additional 130,434 shares during the period. Geode Capital Management LLC lifted its position in DraftKings by 5.4% during the 2nd quarter. Geode Capital Management LLC now owns 9,014,088 shares of the company’s stock worth $385,552,000 after acquiring an additional 458,452 shares during the period. Norges Bank acquired a new stake in shares of DraftKings in the 2nd quarter valued at approximately $362,554,000. Finally, Baillie Gifford & Co. boosted its stake in shares of DraftKings by 26.5% in the first quarter. Baillie Gifford & Co. now owns 8,390,236 shares of the company’s stock valued at $278,640,000 after buying an additional 1,756,778 shares in the last quarter. 37.70% of the stock is owned by institutional investors and hedge funds.

DraftKings Company Profile

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.