DraftKings (NASDAQ:DKNG) Cut to Strong Sell at Zacks Research

Zacks Research cut shares of DraftKings (NASDAQ:DKNG) from a hold rating to a strong sell rating in a report published on Thursday morning,Zacks.com reports.

Other research analysts have also recently issued reports about the company. Jefferies Financial Group set a $52.00 target price on DraftKings in a report on Monday, October 6th. UBS Group lowered their price target on DraftKings from $58.00 to $56.00 and set a “buy” rating for the company in a report on Wednesday, September 24th. Bank of America lowered DraftKings from a “buy” rating to a “neutral” rating and cut their target price for the company from $48.00 to $35.00 in a research report on Tuesday, November 4th. Oppenheimer lowered their price target on DraftKings from $60.00 to $55.00 and set an “outperform” rating for the company in a research report on Wednesday, October 1st. Finally, Benchmark cut their price target on shares of DraftKings from $43.00 to $37.00 and set a “buy” rating on the stock in a research note on Friday. Twenty-six analysts have rated the stock with a Buy rating, two have given a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat, DraftKings has a consensus rating of “Moderate Buy” and a consensus target price of $51.83.

DraftKings Stock Performance

Shares of DKNG stock opened at $30.40 on Thursday. DraftKings has a 1 year low of $26.23 and a 1 year high of $53.61. The company has a debt-to-equity ratio of 1.82, a current ratio of 1.34 and a quick ratio of 1.34. The firm has a market capitalization of $15.09 billion, a price-to-earnings ratio of -53.33, a price-to-earnings-growth ratio of 1.03 and a beta of 1.86. The business has a fifty day moving average of $37.88 and a 200 day moving average of $39.44.

DraftKings (NASDAQ:DKNG) last issued its quarterly earnings data on Thursday, November 6th. The company reported ($0.26) EPS for the quarter, missing the consensus estimate of $0.01 by ($0.27). The business had revenue of $1.14 billion during the quarter, compared to analyst estimates of $1.40 billion. DraftKings had a negative net margin of 4.90% and a negative return on equity of 21.47%. The firm’s revenue for the quarter was up 4.4% on a year-over-year basis. During the same period in the previous year, the business posted ($0.60) earnings per share. DraftKings has set its FY 2025 guidance at EPS. As a group, research analysts expect that DraftKings will post 0.64 earnings per share for the current year.

Insider Buying and Selling

In related news, Director Jocelyn Moore sold 4,861 shares of DraftKings stock in a transaction on Wednesday, August 13th. The shares were sold at an average price of $43.21, for a total value of $210,043.81. Following the completion of the sale, the director owned 1,461 shares in the company, valued at approximately $63,129.81. The trade was a 76.89% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Ryan R. Moore sold 76,390 shares of the business’s stock in a transaction that occurred on Thursday, August 21st. The shares were sold at an average price of $45.92, for a total value of $3,507,828.80. Following the completion of the sale, the director owned 402 shares of the company’s stock, valued at $18,459.84. This trade represents a 99.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 552,777 shares of company stock worth $23,337,924 over the last 90 days. Company insiders own 51.19% of the company’s stock.

Institutional Trading of DraftKings

Hedge funds have recently bought and sold shares of the company. Bank of New York Mellon Corp increased its stake in DraftKings by 27.0% in the 1st quarter. Bank of New York Mellon Corp now owns 1,472,974 shares of the company’s stock worth $48,917,000 after purchasing an additional 313,128 shares in the last quarter. Envestnet Asset Management Inc. lifted its position in shares of DraftKings by 30.0% in the 1st quarter. Envestnet Asset Management Inc. now owns 457,521 shares of the company’s stock worth $15,194,000 after acquiring an additional 105,480 shares during the period. Brown Advisory Inc. lifted its holdings in shares of DraftKings by 14.6% during the 1st quarter. Brown Advisory Inc. now owns 7,600 shares of the company’s stock worth $252,000 after acquiring an additional 968 shares during the period. Stratos Wealth Partners LTD. lifted its position in shares of DraftKings by 25.1% during the 1st quarter. Stratos Wealth Partners LTD. now owns 8,836 shares of the company’s stock worth $293,000 after buying an additional 1,773 shares during the period. Finally, M&T Bank Corp raised its stake in shares of DraftKings by 11.7% in the first quarter. M&T Bank Corp now owns 44,649 shares of the company’s stock valued at $1,483,000 after acquiring an additional 4,679 shares during the last quarter. 37.70% of the stock is currently owned by institutional investors.

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.