Needham & Company LLC Cuts DraftKings (NASDAQ:DKNG) Price Target to $35.00

DraftKings (NASDAQ:DKNG) had its price target reduced by Needham & Company LLC from $52.00 to $35.00 in a research note released on Tuesday, Marketbeat.com reports. They currently have a buy rating on the stock.

A number of other research firms have also issued reports on DKNG. Morgan Stanley raised their price target on shares of DraftKings from $50.00 to $53.00 and gave the stock an “overweight” rating in a research report on Friday, January 16th. Guggenheim reduced their target price on shares of DraftKings from $45.00 to $42.00 and set a “buy” rating for the company in a report on Thursday, January 29th. Stifel Nicolaus decreased their target price on shares of DraftKings from $46.00 to $44.00 and set a “buy” rating for the company in a research report on Friday, January 30th. Bank of America cut their price target on DraftKings from $37.50 to $30.00 and set a “neutral” rating on the stock in a research report on Friday, February 13th. Finally, Northland Securities raised DraftKings from an “under perform” rating to a “market perform” rating in a report on Monday, November 10th. Twenty-four analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, DraftKings has an average rating of “Moderate Buy” and a consensus target price of $37.89.

DraftKings Stock Down 3.1%

Shares of DKNG stock opened at $22.49 on Tuesday. DraftKings has a fifty-two week low of $21.01 and a fifty-two week high of $50.50. The firm has a market capitalization of $11.09 billion, a PE ratio of -562.25, a P/E/G ratio of 0.46 and a beta of 1.67. The company has a debt-to-equity ratio of 2.91, a quick ratio of 1.09 and a current ratio of 1.03. The stock’s 50-day simple moving average is $31.22 and its 200-day simple moving average is $35.64.

Insider Activity

In other news, insider R Stanton Dodge sold 52,777 shares of the firm’s stock in a transaction dated Tuesday, January 20th. The stock was sold at an average price of $32.01, for a total transaction of $1,689,391.77. Following the sale, the insider directly owned 500,000 shares in the company, valued at $16,005,000. This trade represents a 9.55% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Harry Sloan purchased 100,000 shares of the business’s stock in a transaction that occurred on Tuesday, February 17th. The stock was acquired at an average price of $21.85 per share, with a total value of $2,185,000.00. Following the purchase, the director owned 350,219 shares in the company, valued at $7,652,285.15. This represents a 39.96% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Corporate insiders own 51.19% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Compound Planning Inc. purchased a new stake in DraftKings in the 4th quarter worth $2,079,000. Evansbrook LLC acquired a new stake in shares of DraftKings in the fourth quarter valued at about $2,090,000. Strive Financial Group LLC acquired a new stake in shares of DraftKings in the fourth quarter valued at about $147,000. Mercer Global Advisors Inc. ADV increased its stake in shares of DraftKings by 21.3% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 167,110 shares of the company’s stock worth $5,759,000 after purchasing an additional 29,340 shares in the last quarter. Finally, FAS Wealth Partners Inc. raised its position in shares of DraftKings by 27.1% during the 4th quarter. FAS Wealth Partners Inc. now owns 12,167 shares of the company’s stock worth $419,000 after purchasing an additional 2,592 shares during the last quarter. Hedge funds and other institutional investors own 37.70% of the company’s stock.

Trending Headlines about DraftKings

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: Director Harry Sloan bought 100,000 shares at about $21.85, increasing his stake ~40% — a material insider purchase that can signal management confidence and support demand under the stock. Harry Sloan Acquires 100,000 Shares of DraftKings (NASDAQ:DKNG) Stock
• Positive Sentiment: Barclays reiterated a Buy, offering institutional validation that may attract buyers despite mixed Street sentiment. DraftKings (DKNG) Gets a Buy from Barclays
• Neutral Sentiment: DraftKings and FanDuel are weighing a launch in Arkansas; entry could add growth but the state’s strict revenue‑sharing model may limit near‑term margin/earnings impact. FanDuel and DraftKings eye Arkansas sports betting launch despite strict revenue-sharing model
• Negative Sentiment: Multiple brokers cut price targets after Q4 2025 results and a reduced FY2026 revenue outlook — Needham cut its PT to $35 (from $52), JPMorgan to $32, Oppenheimer to $35, Mizuho to $44 and others issued lower targets or more cautious commentary. These cuts lower near‑term upside expectations and are the main driver of today’s weakness. Needham Lowers DraftKings (DKNG) PT to $35 Following Earnings Miss, Reduced Revenue Outlook
• Negative Sentiment: Broader Street skepticism (Goldman, Citi, Truist flagged downside/pessimism) and negative commentary pieces are pressuring retail sentiment and may amplify selling into the weaker technicals (stock near its 52‑week low and below 50/200‑day averages). The Goldman Sachs Group Issues Pessimistic Forecast for DraftKings (NASDAQ:DKNG) Stock Price

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.