DraftKings (NASDAQ:DKNG) Stock Gets Price Target Cut from Citigroup

DraftKings (NASDAQ:DKNG) had its target price cut by Citigroup from $28.00 to $22.00 in a report published on Tuesday morning,Benzinga reports. They currently have a buy rating on the stock.

A number of other brokerages have also weighed in on DKNG. Northland Securities set a $28.00 target price on shares of DraftKings in a research note on Monday, August 10th. Mizuho dropped their price target on DraftKings from $45.00 to $35.00 and set an “outperform” rating on the stock in a research note on Monday. TD Cowen cut their price objective on DraftKings from $35.00 to $25.00 and set a “buy” rating for the company in a report on Monday. Wells Fargo & Company cut DraftKings from an “overweight” rating to an “equal weight” rating and reduced their price objective for the company from $30.00 to $21.00 in a research report on Monday. Finally, Berenberg Bank downgraded DraftKings from a “buy” rating to a “hold” rating and lowered their target price for the company from $27.50 to $20.00 in a report on Tuesday. One analyst has rated the stock with a Strong Buy rating, twenty-five have issued a Buy rating, ten have given a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $27.61.

DraftKings Stock Down 2.6%

NASDAQ DKNG opened at $19.12 on Tuesday. DraftKings has a one year low of $16.55 and a one year high of $36.98. The stock has a 50-day moving average of $21.10 and a 200 day moving average of $23.82. The company has a current ratio of 0.99, a quick ratio of 1.02 and a debt-to-equity ratio of 12.21.

DraftKings (NASDAQ:DKNG) last posted its earnings results on Thursday, November 5th. The company reported ($0.53) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.41) by ($0.12). The company had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.39 billion. DraftKings had a negative net margin of 5.91% and a negative return on equity of 43.92%. DraftKings’s revenue was up 16.2% on a year-over-year basis. During the same quarter in the prior year, the company posted ($0.26) EPS. As a group, analysts forecast that DraftKings will post 0.31 EPS for the current fiscal year.

Insider Transactions at DraftKings

In other DraftKings news, Director Gregory Wendt purchased 5,000 shares of the company’s stock in a transaction dated Wednesday, November 11th. The shares were acquired at an average price of $19.76 per share, for a total transaction of $98,800.00. Following the purchase, the director directly owned 22,920 shares of the company’s stock, valued at $452,899.20. The trade was a 27.90% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Alan Ellingson acquired 18,908 shares of the business’s stock in a transaction dated Monday, November 9th. The shares were acquired at an average cost of $18.51 per share, with a total value of $349,987.08. Following the transaction, the chief financial officer owned 214,692 shares in the company, valued at approximately $3,973,948.92. This trade represents a 9.66% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 47.18% of the company’s stock.

Hedge Funds Weigh In On DraftKings

Institutional investors and hedge funds have recently bought and sold shares of the stock. Kornitzer Capital Management Inc. KS increased its position in DraftKings by 0.4% in the third quarter. Kornitzer Capital Management Inc. KS now owns 176,620 shares of the company’s stock worth $3,356,000 after buying an additional 691 shares in the last quarter. Integrity Advisory Solutions LLC lifted its position in shares of DraftKings by 8.2% during the 3rd quarter. Integrity Advisory Solutions LLC now owns 10,571 shares of the company’s stock valued at $201,000 after buying an additional 803 shares in the last quarter. CoreCap Advisors LLC grew its stake in shares of DraftKings by 336.5% during the 2nd quarter. CoreCap Advisors LLC now owns 1,148 shares of the company’s stock valued at $29,000 after acquiring an additional 885 shares during the period. Englebert Financial Advisers LLC grew its stake in shares of DraftKings by 1.3% during the 3rd quarter. Englebert Financial Advisers LLC now owns 68,237 shares of the company’s stock valued at $1,297,000 after acquiring an additional 897 shares during the period. Finally, Envestnet Portfolio Solutions Inc. grew its stake in shares of DraftKings by 9.0% during the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 13,744 shares of the company’s stock valued at $347,000 after acquiring an additional 1,139 shares during the period. 37.70% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about DraftKings

Investors following DKNG have been watching these headlines:

• Positive Sentiment: A DraftKings director bought 5,000 shares for about $98,800, increasing his position by 27.9%. Insider buying may signal confidence, though the purchase is modest relative to the company’s size. Director share purchase
• Neutral Sentiment: Reports that DraftKings and Polymarket trimmed staff could reflect cost discipline, but the available reports do not specify the scale or expected savings. Staff cuts report
• Negative Sentiment: Wells Fargo downgraded DraftKings, and several other firms reportedly cut ratings or price targets. The repeated analyst caution adds pressure to expectations for the shares. Wells Fargo downgrade

About DraftKings

DraftKings Inc. is a digital sports and entertainment company founded in 2012. It began as a daily fantasy sports platform and has since expanded into online sports betting and gaming. The company offers daily fantasy contests, a sportsbook and online casino products, including games such as slots and table games. Its services are available in a range of U.S. jurisdictions and in Ontario, Canada, where permitted by local regulations. DraftKings is headquartered in Boston, Massachusetts. Co-founder Jason Robins serves as the company’s chief executive officer.