DraftKings (NASDAQ:DKNG) Stock Rating Raised to “Hold” at Zacks Research

Zacks Research upgraded shares of DraftKings (NASDAQ:DKNG) from a strong sell rating to a hold rating in a research report sent to investors on Wednesday morning,Zacks reports.

Several other equities research analysts have also issued reports on the stock. Weiss Ratings lowered shares of DraftKings from a “sell (d)” rating to a “sell (e+)” rating in a research note on Friday, August 21st. Moffett Nathanson restated a “neutral” rating and issued a $22.00 price target on shares of DraftKings in a research note on Thursday, October 22nd. Mizuho cut their price target on DraftKings from $45.00 to $35.00 and set an “outperform” rating for the company in a research note on Monday. Bank of America reaffirmed a “buy” rating on shares of DraftKings in a report on Friday, November 6th. Finally, Jefferies Financial Group reiterated a “buy” rating and set a $28.00 price target on shares of DraftKings in a research report on Monday. One equities research analyst has rated the stock with a Strong Buy rating, twenty-five have issued a Buy rating, eleven have issued a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $27.61.

DraftKings Stock Performance

Shares of NASDAQ DKNG opened at $19.12 on Wednesday. The company’s fifty day moving average price is $21.10 and its 200 day moving average price is $23.82. DraftKings has a 1 year low of $16.55 and a 1 year high of $36.98. The company has a market capitalization of $9.53 billion, a PE ratio of -23.90, a price-to-earnings-growth ratio of 2.58 and a beta of 1.65. The company has a debt-to-equity ratio of 12.21, a quick ratio of 1.02 and a current ratio of 0.99.

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

Insiders Place Their Bets

In other DraftKings news, Director Jocelyn Moore sold 10,759 shares of the company’s stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $24.05, for a total transaction of $258,753.95. Following the completion of the transaction, the director directly owned 1,881 shares in the company, valued at approximately $45,238.05. This represents a 85.12% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Gregory Wendt acquired 5,000 shares of the firm’s stock in a transaction on Wednesday, November 11th. The shares were bought at an average cost of $19.76 per share, for a total transaction of $98,800.00. Following the completion of the acquisition, the director owned 22,920 shares of the company’s stock, valued at approximately $452,899.20. This represents a 27.90% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 47.18% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Janus Henderson Group PLC increased its stake in DraftKings by 9.3% during the 1st quarter. Janus Henderson Group PLC now owns 27,665,699 shares of the company’s stock worth $588,288,000 after buying an additional 2,351,790 shares in the last quarter. Spruce House Investment Management LLC lifted its position in shares of DraftKings by 129.6% in the first quarter. Spruce House Investment Management LLC now owns 9,650,000 shares of the company’s stock valued at $208,633,000 after acquiring an additional 5,446,166 shares in the last quarter. Swiss National Bank lifted its position in shares of DraftKings by 7.4% in the first quarter. Swiss National Bank now owns 1,314,864 shares of the company’s stock valued at $28,427,000 after acquiring an additional 90,400 shares in the last quarter. Bank of New York Mellon Corp purchased a new position in shares of DraftKings in the second quarter valued at approximately $24,014,000. Finally, First Trust Advisors LP boosted its stake in shares of DraftKings by 1.7% in the third quarter. First Trust Advisors LP now owns 1,061,043 shares of the company’s stock worth $20,160,000 after acquiring an additional 17,781 shares during the last quarter. Institutional investors and hedge funds own 37.70% of the company’s stock.

Latest DraftKings News

These are some of the DKNG news items that stood out recently:

• Positive Sentiment: DraftKings is targeting $650 million to $750 million in Predictions revenue in 2027, citing engagement and customer retention. Reports that the exchange’s revenue margins are nearing sportsbook levels could bolster the opportunity if the forecast is achieved. Predictions revenue outlook
• Neutral Sentiment: Zacks Research raised its rating from “strong sell” to “hold.” The change is an improvement, but a hold rating does not indicate a bullish outlook.
• Negative Sentiment: Law firms have opened investigations into whether DraftKings adequately disclosed the costs of its prediction-market growth. These are investigations, not findings of wrongdoing, but they add legal and reputational uncertainty. Investor investigation

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.