Bank of America Cuts DraftKings (NASDAQ:DKNG) Price Target to $30.00

DraftKings (NASDAQ:DKNG) had its target price lowered by Bank of America from $37.50 to $30.00 in a research report sent to investors on Friday morning,Benzinga reports. The brokerage currently has a neutral rating on the stock.

Other analysts also recently issued reports about the company. Rothschild & Co Redburn set a $35.00 price target on DraftKings in a report on Friday, January 30th. Northland Securities upgraded DraftKings from an “under perform” rating to a “market perform” rating in a report on Monday, November 10th. Macquarie Infrastructure reduced their price target on DraftKings from $50.00 to $48.00 and set an “outperform” rating on the stock in a research report on Monday, November 10th. Truist Financial downgraded shares of DraftKings from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, February 3rd. Finally, Benchmark reiterated a “buy” rating on shares of DraftKings in a research note on Monday, January 12th. Twenty-three analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, DraftKings presently has an average rating of “Moderate Buy” and a consensus price target of $44.14.

DraftKings Price Performance

DKNG opened at $21.76 on Friday. The company has a 50 day moving average of $32.22 and a two-hundred day moving average of $36.13. DraftKings has a 52-week low of $21.01 and a 52-week high of $53.61. The company has a quick ratio of 1.09, a current ratio of 1.10 and a debt-to-equity ratio of 2.51. The company has a market cap of $10.83 billion, a P/E ratio of -544.00, a P/E/G ratio of 0.43 and a beta of 1.67.

Insider Activity at DraftKings

In related news, insider R Stanton Dodge sold 52,777 shares of DraftKings stock in a transaction dated Tuesday, January 20th. The stock was sold at an average price of $32.01, for a total value 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 trade represents a 9.55% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 47.08% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of DKNG. IHT Wealth Management LLC raised its position in shares of DraftKings by 4.1% during the 2nd quarter. IHT Wealth Management LLC now owns 6,271 shares of the company’s stock valued at $269,000 after acquiring an additional 248 shares in the last quarter. Orion Porfolio Solutions LLC raised its holdings in shares of DraftKings by 3.1% during the third quarter. Orion Porfolio Solutions LLC now owns 10,608 shares of the company’s stock worth $397,000 after purchasing an additional 321 shares during the period. Geneos Wealth Management Inc. raised its holdings in shares of DraftKings by 7.3% during the third quarter. Geneos Wealth Management Inc. now owns 4,793 shares of the company’s stock worth $179,000 after purchasing an additional 328 shares during the period. Valeo Financial Advisors LLC lifted its position in shares of DraftKings by 3.6% in the 2nd quarter. Valeo Financial Advisors LLC now owns 10,009 shares of the company’s stock worth $429,000 after buying an additional 348 shares during the last quarter. Finally, Huntleigh Advisors Inc. boosted its holdings in shares of DraftKings by 0.8% in the 3rd quarter. Huntleigh Advisors Inc. now owns 43,630 shares of the company’s stock valued at $1,632,000 after buying an additional 363 shares during the period. Institutional investors own 37.70% of the company’s stock.

DraftKings News Roundup

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

About DraftKings

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.