Truist Financial Issues Pessimistic Forecast for DraftKings (NASDAQ:DKNG) Stock Price

DraftKings (NASDAQ:DKNG) had its price target reduced by equities researchers at Truist Financial from $50.00 to $45.00 in a research report issued on Monday,Benzinga reports. The brokerage currently has a “buy” rating on the stock. Truist Financial’s target price would suggest a potential upside of 47.54% from the stock’s current price.

Other equities research analysts also recently issued reports about the company. Stifel Nicolaus restated a “buy” rating and issued a $46.00 price target (down from $50.00) on shares of DraftKings in a report on Monday. UBS Group decreased their price objective on DraftKings from $58.00 to $56.00 and set a “buy” rating for the company in a research report on Wednesday, September 24th. Bank of America cut DraftKings from a “buy” rating to a “neutral” rating and lowered their target price for the stock from $48.00 to $35.00 in a research note on Tuesday, November 4th. Susquehanna dropped their target price on shares of DraftKings from $59.00 to $48.00 and set a “positive” rating on the stock in a report on Monday. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of DraftKings in a report on Wednesday, October 8th. Twenty-six equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $48.66.

DraftKings Stock Down 0.1%

Shares of NASDAQ:DKNG opened at $30.50 on Monday. The company has a 50 day moving average price of $37.18 and a two-hundred day moving average price of $39.43. 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 company has a market capitalization of $15.18 billion, a PE ratio of -53.51, a PEG ratio of 1.02 and a beta of 1.86. DraftKings has a 52 week low of $26.23 and a 52 week high of $53.61.

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

Insider Transactions at DraftKings

In related news, CFO Alan Wayne Ellingson sold 44,693 shares of the stock in a transaction on Tuesday, August 19th. The shares were sold at an average price of $44.90, for a total transaction of $2,006,715.70. Following the completion of the transaction, the chief financial officer owned 128,131 shares in the company, valued at approximately $5,753,081.90. This represents a 25.86% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider R Stanton Dodge sold 105,554 shares of the firm’s stock in a transaction on Tuesday, September 2nd. The shares were sold at an average price of $47.37, for a total transaction 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. This trade represents a 17.09% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 337,916 shares of company stock valued at $14,118,881 in the last ninety days. 47.08% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On DraftKings

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Bank of Jackson Hole Trust bought a new position in shares of DraftKings in the 1st quarter valued at about $31,000. Root Financial Partners LLC acquired a new position in DraftKings during the third quarter valued at approximately $33,000. TD Private Client Wealth LLC boosted its position in DraftKings by 54.4% during the second quarter. TD Private Client Wealth LLC now owns 800 shares of the company’s stock valued at $34,000 after purchasing an additional 282 shares during the last quarter. Summit Securities Group LLC grew its stake in DraftKings by 349.1% in the first quarter. Summit Securities Group LLC now owns 1,042 shares of the company’s stock valued at $35,000 after purchasing an additional 810 shares in the last quarter. Finally, AlphaQuest LLC acquired a new position in shares of DraftKings during the 3rd quarter worth approximately $41,000. 37.70% of the stock is 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.