DraftKings (NASDAQ:DKNG) Hits New 52-Week Low Following Analyst Downgrade

Shares of DraftKings Inc. (NASDAQ:DKNG) hit a new 52-week low during mid-day trading on Tuesday after BMO Capital Markets lowered their price target on the stock from $65.00 to $63.00. BMO Capital Markets currently has an outperform rating on the stock. DraftKings traded as low as $28.95 and last traded at $29.4740, with a volume of 2247215 shares changing hands. The stock had previously closed at $30.57.

Several other research analysts have also weighed in on the stock. Northland Capmk lowered shares of DraftKings from a “strong-buy” rating to a “strong sell” rating in a research note on Wednesday, October 1st. Citigroup reissued a “neutral” rating on shares of DraftKings in a research note on Wednesday, October 1st. Wall Street Zen lowered shares of DraftKings from a “buy” rating to a “hold” rating in a research note on Friday, October 3rd. Benchmark reiterated a “buy” rating on shares of DraftKings in a report on Wednesday, October 22nd. Finally, Oppenheimer reduced their target price on DraftKings from $60.00 to $55.00 and set an “outperform” rating on the stock in a report on Wednesday, October 1st. Twenty-six investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $52.34.

Insider Transactions at DraftKings

In other DraftKings news, insider R Stanton Dodge sold 105,554 shares of DraftKings stock in a transaction that occurred on Tuesday, September 2nd. The shares were sold at an average price of $47.37, for a total value of $5,000,092.98. Following the transaction, the insider owned 512,181 shares of the company’s stock, valued at approximately $24,262,013.97. The trade was a 17.09% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Matthew Kalish sold 210,000 shares of DraftKings stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $42.90, for a total transaction of $9,009,000.00. Following the completion of the transaction, the insider directly owned 4,190,233 shares in the company, valued at approximately $179,760,995.70. The trade was a 4.77% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 500,000 shares of company stock valued at $21,807,391. 47.08% of the stock is currently owned by insiders.

Institutional Trading of DraftKings

Institutional investors have recently made changes to their positions in the business. GAMMA Investing LLC raised its position in DraftKings by 57.1% during the first quarter. GAMMA Investing LLC now owns 1,474 shares of the company’s stock worth $49,000 after acquiring an additional 536 shares in the last quarter. Amalgamated Bank raised its position in DraftKings by 9.1% during the first quarter. Amalgamated Bank now owns 32,632 shares of the company’s stock worth $1,084,000 after acquiring an additional 2,721 shares in the last quarter. Teacher Retirement System of Texas bought a new stake in DraftKings during the first quarter worth $2,130,000. D.A. Davidson & CO. raised its position in DraftKings by 43.9% during the first quarter. D.A. Davidson & CO. now owns 41,612 shares of the company’s stock worth $1,382,000 after acquiring an additional 12,688 shares in the last quarter. Finally, IFM Investors Pty Ltd raised its position in DraftKings by 9.3% during the first quarter. IFM Investors Pty Ltd now owns 83,750 shares of the company’s stock worth $2,781,000 after acquiring an additional 7,147 shares in the last quarter. Institutional investors own 37.70% of the company’s stock.

DraftKings Price Performance

The company has a market capitalization of $14.20 billion, a P/E ratio of -44.02, a price-to-earnings-growth ratio of 0.95 and a beta of 1.86. The company’s 50-day moving average price is $39.03 and its two-hundred day moving average price is $39.58. 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 issued its quarterly earnings data on Thursday, August 7th. The company reported $0.30 earnings per share for the quarter, beating the consensus estimate of $0.16 by $0.14. The company had revenue of $1.51 billion for the quarter, compared to analyst estimates of $1.39 billion. DraftKings had a negative net margin of 5.63% and a negative return on equity of 30.06%. The company’s revenue was up 36.9% on a year-over-year basis. During the same period in the prior year, the firm earned $0.12 earnings per share. DraftKings has set its FY 2025 guidance at EPS. As a group, sell-side analysts expect that DraftKings Inc. will post 0.64 EPS for the current year.

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.