DraftKings (NASDAQ:DKNG) Downgraded to “Hold” Rating by Argus

Argus cut shares of DraftKings (NASDAQ:DKNG) from a buy rating to a hold rating in a research report sent to investors on Tuesday, MarketBeat reports.

Other equities research analysts have also recently issued research reports about the stock. Guggenheim set a $37.00 price target on shares of DraftKings in a research report on Tuesday, February 17th. Berenberg Bank set a $26.40 price objective on shares of DraftKings in a research note on Tuesday, February 24th. Jefferies Financial Group set a $46.00 target price on shares of DraftKings in a report on Tuesday, March 3rd. Susquehanna set a $33.00 target price on shares of DraftKings in a research report on Tuesday, February 17th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of DraftKings in a research note on Wednesday, January 21st. Twenty-five research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, DraftKings has a consensus rating of “Moderate Buy” and a consensus target price of $37.09.

DraftKings Price Performance

Shares of DKNG stock opened at $25.22 on Tuesday. The firm has a market cap of $12.43 billion, a price-to-earnings ratio of -630.50, a PEG ratio of 1.02 and a beta of 1.67. DraftKings has a 12 month low of $21.01 and a 12 month high of $48.78. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 2.91. The stock has a 50-day moving average price of $27.46 and a 200 day moving average price of $32.83.

Insider Activity at DraftKings

In other DraftKings news, Director Jocelyn Moore sold 2,150 shares of the firm’s stock in a transaction that occurred on Friday, March 13th. The shares were sold at an average price of $25.60, for a total transaction of $55,040.00. Following the completion of the transaction, the director owned 1,406 shares in the company, valued at approximately $35,993.60. This trade represents a 60.46% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Paul Liberman sold 484,417 shares of the business’s stock in a transaction that occurred on Wednesday, March 11th. The stock was sold at an average price of $25.16, for a total transaction of $12,187,931.72. Following the completion of the transaction, the insider owned 213,597 shares in the company, valued at $5,374,100.52. This trade represents a 69.40% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 549,495 shares of company stock valued at $14,166,700 over the last ninety days. Insiders own 47.08% of the company’s stock.

Institutional Investors Weigh In On DraftKings

Large investors have recently modified their holdings of the company. Vanguard Group Inc. increased its stake in DraftKings by 3.1% in the fourth quarter. Vanguard Group Inc. now owns 44,758,204 shares of the company’s stock valued at $1,542,368,000 after purchasing an additional 1,354,457 shares in the last quarter. Janus Henderson Group PLC boosted its position in shares of DraftKings by 50.8% during the 4th quarter. Janus Henderson Group PLC now owns 25,313,909 shares of the company’s stock worth $858,893,000 after purchasing an additional 8,524,923 shares in the last quarter. Viking Global Investors LP boosted its position in shares of DraftKings by 27.4% during the 4th quarter. Viking Global Investors LP now owns 19,119,912 shares of the company’s stock worth $658,872,000 after purchasing an additional 4,116,561 shares in the last quarter. Capital World Investors grew its stake in shares of DraftKings by 181.4% in the 4th quarter. Capital World Investors now owns 18,626,429 shares of the company’s stock valued at $641,867,000 after buying an additional 12,008,357 shares during the period. Finally, AQR Capital Management LLC grew its stake in shares of DraftKings by 41.0% in the 4th quarter. AQR Capital Management LLC now owns 16,474,009 shares of the company’s stock valued at $567,694,000 after buying an additional 4,788,337 shares during the period. 37.70% of the stock is currently owned by institutional investors and hedge funds.

DraftKings News Summary

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: Analyst and industry support remains meaningful: consensus across brokerages is an average “Moderate Buy” with the majority of analysts recommending buy—this keeps longer‑term upside expectations alive and helps underpin the stock. DraftKings Receives Average Recommendation of “Moderate Buy”
• Positive Sentiment: Bernstein reiterated an Outperform rating and nudged its target higher, a bullish signal that can lift sentiment among investors focused on analyst guidance. Bernstein Remains Bullish on DraftKings
• Positive Sentiment: Commercial/strategic progress: coverage notes that DraftKings’ relationship with ESPN appears to be deepening and the company is tracking potential federal rule changes — both items that could expand distribution if realized. DraftKings Weighs Federal Rule Shift As ESPN Tie Up Deepens
• Neutral Sentiment: Valuation and volatility debate continues: commentary highlights recent short‑term gains versus weaker YTD/1‑year returns, leaving uncertainty about whether current pricing already reflects the company’s growth prospects. Traders may be reacting to technicals as much as fundamentals. Is DraftKings Pricing Reflect Its Recent Volatility And Growth Prospects
• Negative Sentiment: Analyst downgrade: Argus cut DraftKings from “buy” to “hold” — downgrades like this can sap momentum and increase selling pressure among short‑term holders. Argus Downgrades DraftKings
• Negative Sentiment: Insider selling: Director Jocelyn Moore sold 2,150 shares (about $55k at the sale price), cutting her stake by ~60%—a visible insider sale that some investors interpret as a negative near‑term signal. Director Jocelyn Moore Sells Shares
• Negative Sentiment: UBS trimmed its price target from $53 to $43 (while retaining a “buy”), reducing implied upside and likely dampening enthusiasm among value‑sensitive investors. UBS Lowers DraftKings Price Target

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.