Macquarie Has Lowered Expectations for DraftKings (NASDAQ:DKNG) Stock Price

DraftKings (NASDAQ:DKNG) had its price target lowered by equities research analysts at Macquarie from $50.00 to $48.00 in a research report issued to clients and investors on Monday,Benzinga reports. The brokerage presently has an “outperform” rating on the stock. Macquarie’s target price points to a potential upside of 57.38% from the stock’s previous close.

DKNG has been the topic of a number of other reports. Weiss Ratings restated a “sell (d-)” rating on shares of DraftKings in a report on Wednesday, October 8th. 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. BTIG Research lowered their price target on DraftKings from $45.00 to $42.00 and set a “buy” rating for the company in a report on Friday, November 7th. Jefferies Financial Group set a $52.00 price objective on DraftKings in a report on Monday, October 6th. Finally, Stifel Nicolaus reaffirmed a “buy” rating and set a $46.00 target price (down from $50.00) on shares of DraftKings in a research report on Monday. Twenty-six equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $48.66.

DraftKings Trading Down 0.1%

DKNG opened at $30.50 on Monday. The company has a debt-to-equity ratio of 2.51, a quick ratio of 1.34 and a current ratio of 1.10. The stock’s 50 day moving average price is $37.18 and its 200-day moving average price is $39.43. DraftKings has a one year low of $26.23 and a one year high of $53.61. The stock has a market cap of $15.18 billion, a price-to-earnings ratio of -53.51, a P/E/G ratio of 1.02 and a beta of 1.86.

DraftKings (NASDAQ:DKNG) last issued its quarterly earnings results on Thursday, November 6th. The company reported ($0.26) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.01 by ($0.27). DraftKings had a negative return on equity of 22.84% and a negative net margin of 4.90%.The business had revenue of $1.14 billion for the quarter, compared to the consensus estimate of $1.40 billion. During the same period in the prior year, the business posted ($0.60) earnings per share. DraftKings’s revenue was up 4.4% on a year-over-year basis. DraftKings has set its FY 2025 guidance at EPS. On average, equities analysts forecast that DraftKings will post 0.64 EPS for the current year.

Insider Activity

In other news, insider R Stanton Dodge sold 105,554 shares of the business’s stock in a transaction on Tuesday, September 2nd. The stock was sold at an average price of $47.37, for a total value of $5,000,092.98. Following the completion of the transaction, the insider directly 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 position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Alan Wayne Ellingson sold 44,693 shares of the company’s stock in a transaction 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 owned 128,131 shares of the company’s stock, valued at $5,753,081.90. This trade represents a 25.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 337,916 shares of company stock worth $14,118,881. 47.08% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the company. Brown Advisory Inc. grew its holdings in DraftKings by 14.6% in the first quarter. Brown Advisory Inc. now owns 7,600 shares of the company’s stock worth $252,000 after purchasing an additional 968 shares during the last quarter. Helios Capital Management PTE. Ltd. lifted its holdings in shares of DraftKings by 926.0% during the 2nd quarter. Helios Capital Management PTE. Ltd. now owns 114,000 shares of the company’s stock valued at $4,889,000 after purchasing an additional 102,889 shares during the last quarter. Claro Advisors LLC boosted its position in shares of DraftKings by 121.4% in the 2nd quarter. Claro Advisors LLC now owns 39,915 shares of the company’s stock worth $1,712,000 after purchasing an additional 21,890 shares in the last quarter. K.J. Harrison & Partners Inc acquired a new stake in shares of DraftKings in the 2nd quarter worth $1,081,000. Finally, Fortis Capital Advisors LLC purchased a new position in DraftKings during the 2nd quarter worth $535,000. 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.