DraftKings (NASDAQ:DKNG) Price Target Cut to $32.00 by Analysts at Sanford C. Bernstein

DraftKings (NASDAQ:DKNG) had its price objective cut by Sanford C. Bernstein from $41.00 to $32.00 in a report published on Friday morning, MarketBeat.com reports. They currently have an outperform rating on the stock.

A number of other research firms have also recently issued reports on DKNG. Stifel Nicolaus cut their price objective on DraftKings from $46.00 to $44.00 and set a “buy” rating for the company in a report on Friday, January 30th. Truist Financial downgraded DraftKings from a “strong-buy” rating to a “hold” rating in a research report on Tuesday. Susquehanna set a $44.00 price target on shares of DraftKings in a research report on Tuesday, January 27th. Wells Fargo & Company started coverage on shares of DraftKings in a research note on Tuesday, November 18th. They set an “equal weight” rating and a $31.00 price target on the stock. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of DraftKings in a report on Wednesday, January 21st. Twenty-three research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $45.79.

DraftKings Stock Performance

DraftKings stock opened at $26.62 on Friday. DraftKings has a fifty-two week low of $25.01 and a fifty-two week high of $53.61. The company has a debt-to-equity ratio of 2.51, a quick ratio of 1.09 and a current ratio of 1.10. The stock has a market cap of $13.25 billion, a P/E ratio of -46.70, a price-to-earnings-growth ratio of 0.44 and a beta of 1.67. The firm’s fifty day moving average price is $33.09 and its 200-day moving average price is $36.91.

DraftKings (NASDAQ:DKNG) last announced its earnings results on Friday, November 7th. 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 return on equity of 22.84% and a negative net margin of 4.90%.The company had revenue of $1.14 billion during the quarter, compared to analysts’ expectations of $1.40 billion. During the same quarter last year, the firm posted ($0.60) earnings per share. The firm’s revenue was up 4.4% on a year-over-year basis. On average, equities research analysts expect that DraftKings will post 0.64 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Harry Sloan bought 25,000 shares of the firm’s stock in a transaction that occurred on Tuesday, November 11th. The shares were bought at an average cost of $30.30 per share, with a total value of $757,500.00. Following the completion of the purchase, the director directly owned 249,712 shares in the company, valued at $7,566,273.60. This represents a 11.13% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at this link. Also, CFO Alan Wayne Ellingson sold 8,421 shares of the company’s stock in a transaction on Friday, November 14th. The shares were sold at an average price of $29.23, for a total transaction of $246,145.83. Following the sale, the chief financial officer owned 126,990 shares of the company’s stock, valued at $3,711,917.70. This represents a 6.22% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 113,975 shares of company stock worth $3,721,511 over the last ninety days. Company insiders own 51.19% of the company’s stock.

Institutional Trading of DraftKings

Large investors have recently modified their holdings of the business. Dagco Inc. bought a new position in DraftKings during the 4th quarter valued at approximately $26,000. Ameriflex Group Inc. raised its holdings in shares of DraftKings by 100.0% during the third quarter. Ameriflex Group Inc. now owns 810 shares of the company’s stock valued at $30,000 after acquiring an additional 405 shares in the last quarter. Root Financial Partners LLC bought a new position in shares of DraftKings during the third quarter valued at approximately $33,000. Asset Dedication LLC purchased a new stake in DraftKings in the third quarter worth $37,000. Finally, Montag A & Associates Inc. boosted its holdings in DraftKings by 82.5% in the fourth quarter. Montag A & Associates Inc. now owns 1,106 shares of the company’s stock valued at $38,000 after acquiring an additional 500 shares in the last quarter. 37.70% of the stock is owned by institutional investors.

Trending Headlines about DraftKings

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: DraftKings struck a deal with Crypto.com to add the first player-specific NFL and NBA contracts to DraftKings Predictions, expand sports coverage, integrate additional CFTC-regulated liquidity providers (and Railbird Exchange soon), and enable future categories (culture, politics). This strengthens product breadth and regulatory credibility for prediction markets. DraftKings Expands Prediction Markets Catalog in Deal With Crypto.com
• Positive Sentiment: Local expansion: DraftKings leased office space in Raleigh as it grows presence where sports betting is taking root in North Carolina — a sign of geographic growth and operating expansion. DraftKings leases space in Raleigh as sports betting takes root in North Carolina
• Neutral Sentiment: Sanford C. Bernstein cut its price target from $41 to $32 but kept an “Outperform” rating — a downgrade in near-term expectations but still constructive relative to consensus upside. DraftKings price target lowered by Bernstein
• Neutral Sentiment: Analyst sentiment is mixed ahead of DraftKings’ upcoming quarterly results — some firms remain constructive while others are trimming expectations, contributing to volatility into the print. Mixed Analyst Sentiment on DraftKings (DKNG) Ahead of Fourth-Quarter Results
• Negative Sentiment: Analyst downgrades and price-target cuts continue to pressure the stock — recent coverage includes cuts to ratings/targets and headlines noting a new 1‑year low after downgrades. This increases near-term downside risk if guidance or results disappoint. DraftKings Cut to “Hold” at Truist Financial
• Negative Sentiment: Competitive and operational risks: a short-seller report flagged mounting competition from Kalshi in prediction markets, and analysts/news outlets have raised concerns about sluggish growth and margin pressure — issues that could blunt the long-term revenue upside from new product launches. DraftKings faces mounting competition from Kalshi prediction markets, says short seller
• Negative Sentiment: Earnings risk: preview pieces suggest DraftKings may lack the catalysts for an earnings beat next week, increasing the chance of a negative reaction if revenue or margins fall short. DraftKings (DKNG) Earnings Expected to Grow: What to Know Ahead of Next Week’s Release

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.