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

DraftKings Inc. (NASDAQ:DKNG)’s stock price reached a new 52-week low on Friday after BTIG Research lowered their price target on the stock from $45.00 to $37.00. BTIG Research currently has a buy rating on the stock. DraftKings traded as low as $21.01 and last traded at $22.1860, with a volume of 20782520 shares changing hands. The stock had previously closed at $25.16.

Several other equities research analysts have also recently weighed in on the stock. Sanford C. Bernstein cut their price objective on shares of DraftKings from $41.00 to $32.00 and set an “outperform” rating for the company in a research report on Friday, February 6th. Weiss Ratings restated a “sell (d-)” rating on shares of DraftKings in a research report on Wednesday, January 21st. Zacks Research upgraded shares of DraftKings from a “strong sell” rating to a “hold” rating in a research report on Friday, January 9th. UBS Group reissued a “buy” rating on shares of DraftKings in a research note on Wednesday, January 7th. Finally, Mizuho lowered their price objective on shares of DraftKings from $54.00 to $46.00 and set an “outperform” rating for the company in a research report on Thursday, November 13th. Twenty-three investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $44.14.

Insider Buying and Selling at DraftKings

In other news, insider R Stanton Dodge sold 52,777 shares of the company’s stock in a transaction on Tuesday, January 20th. The shares were sold at an average price of $32.01, for a total transaction of $1,689,391.77. Following the completion of the transaction, the insider directly owned 500,000 shares in the company, valued at approximately $16,005,000. This represents a 9.55% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 51.19% of the company’s stock.

More DraftKings News

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: Q4 revenue and margin progress — DraftKings reported +43% year‑over‑year revenue and said it achieved record revenue and adjusted EBITDA, signaling strong top‑line growth and improving operating results. DraftKings Reports Fourth Quarter Revenue Growth of 43%
• Positive Sentiment: Some analysts remain constructive — BTIG kept a “buy” rating despite cutting the price target to $37, still implying substantial upside from current levels, which can provide a floor for longer‑term buyers. Benzinga
• Neutral Sentiment: Mixed analyst updates — Benchmark and Bank of America trimmed targets (Benchmark to $29 with a buy, BofA to $30 with neutral). Ratings remain mixed between buy/neutral, leaving analyst coverage supportive but less bullish. TickerReport
• Neutral Sentiment: Earnings call and transcript available — Investors can review management’s Q4 commentary and guidance rationale in the transcript to assess credibility of the company’s longer‑term prediction‑market strategy. Earnings Call Transcript
• Negative Sentiment: EPS missed expectations — DraftKings reported $0.36 EPS vs consensus ~ $0.45, a clear earnings miss that pressured the stock despite revenue growth. MarketBeat Earnings Report
• Negative Sentiment: Cautious FY‑2026 guidance — Management’s revenue guidance came in below consensus (company guided roughly $6.5B–$6.9B vs ~ $7.3B Street estimate), signaling slower near‑term growth and prompting downward revisions. Press Release / Slides
• Negative Sentiment: Prediction‑market risk and regulatory scrutiny — The company’s large prediction‑markets ambitions are drawing regulatory attention (CFTC) and investor skepticism about timing and profitability of that business, adding uncertainty to growth assumptions. WSJ
• Negative Sentiment: High trading volume / selling pressure — The session showed well‑above‑average volume, indicating aggressive repositioning by investors after the miss and guidance, which amplified the downward move. ProactiveInvestors

Institutional Trading of DraftKings

Several hedge funds and other institutional investors have recently made changes to their positions in DKNG. Dagco Inc. bought a new stake in shares of DraftKings in the fourth quarter worth $26,000. Ameriflex Group Inc. raised its position in DraftKings by 100.0% during the 3rd quarter. Ameriflex Group Inc. now owns 810 shares of the company’s stock worth $30,000 after purchasing an additional 405 shares during the last quarter. Root Financial Partners LLC acquired a new position in DraftKings during the 3rd quarter worth about $33,000. Asset Dedication LLC bought a new stake in shares of DraftKings in the 3rd quarter valued at about $37,000. Finally, Atlantic Union Bankshares Corp acquired a new stake in shares of DraftKings in the second quarter valued at about $45,000. 37.70% of the stock is currently owned by institutional investors.

DraftKings Stock Down 13.5%

The stock has a 50-day moving average price of $32.22 and a 200-day moving average price of $36.25. The company has a debt-to-equity ratio of 2.51, a current ratio of 1.10 and a quick ratio of 1.09. The company has a market capitalization of $10.83 billion, a P/E ratio of -544.00, a P/E/G ratio of 0.50 and a beta of 1.67.

DraftKings Company Profile

DraftKings Inc is a leading digital sports entertainment and gaming company specializing in daily fantasy sports, sports betting and iGaming products. The company provides an integrated platform where users can participate in daily fantasy contests, place wagers on professional sports events, and enjoy a range of online casino-style games. DraftKings’ proprietary technology supports real-time odds, live scoring and advanced analytics to enhance the user experience across mobile and desktop applications.

Founded in 2012 by co-founders Jason Robins, Matthew Kalish and Paul Liberman, DraftKings began as a daily fantasy sports provider and rapidly expanded into regulated sports betting following legislative changes in the United States.