Bank of America Has Lowered Expectations for DraftKings (NASDAQ:DKNG) Stock Price

DraftKings (NASDAQ:DKNG) had its price objective reduced by stock analysts at Bank of America from $37.50 to $30.00 in a report issued on Friday,Benzinga reports. The firm currently has a “neutral” rating on the stock. Bank of America‘s price objective would indicate a potential upside of 19.24% from the stock’s current price.

Several other analysts also recently weighed in on the company. Barclays decreased their target price on DraftKings from $54.00 to $40.00 and set an “overweight” rating for the company in a research report on Monday, November 10th. UBS Group reiterated a “buy” rating on shares of DraftKings in a report on Wednesday, January 7th. Guggenheim dropped their target price on shares of DraftKings from $45.00 to $42.00 and set a “buy” rating on the stock in a research note on Thursday, January 29th. Benchmark reaffirmed a “buy” rating on shares of DraftKings in a research note on Monday, January 12th. Finally, Stifel Nicolaus lowered their price target on DraftKings from $46.00 to $44.00 and set a “buy” rating for the company in a report on Friday, January 30th. Twenty-three equities 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 company presently has a consensus rating of “Moderate Buy” and a consensus price target of $45.62.

DraftKings Trading Down 4.3%

DKNG opened at $25.16 on Friday. 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’s 50 day moving average price is $32.46 and its 200-day moving average price is $36.41. DraftKings has a one year low of $25.01 and a one year high of $53.61. The stock has a market cap of $12.52 billion, a price-to-earnings ratio of -44.14, a P/E/G ratio of 0.52 and a beta of 1.67.

Insider Buying and Selling

In other DraftKings news, insider R Stanton Dodge sold 52,777 shares of the company’s stock in a transaction on 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 completion of the sale, the insider owned 500,000 shares in the company, valued at $16,005,000. This represents a 9.55% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 51.19% of the stock is owned by company insiders.

Institutional Investors Weigh In On DraftKings

A number of institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its holdings in DraftKings by 3.1% in the fourth quarter. Vanguard Group Inc. now owns 44,758,204 shares of the company’s stock worth $1,542,368,000 after purchasing an additional 1,354,457 shares in the last quarter. Capital World Investors grew its position 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 worth $641,867,000 after buying an additional 12,008,357 shares during the last quarter. Viking Global Investors LP bought a new position in shares of DraftKings during the 3rd quarter worth approximately $561,125,000. AQR Capital Management LLC lifted its position in DraftKings by 63.5% during the third quarter. AQR Capital Management LLC now owns 11,685,672 shares of the company’s stock valued at $437,044,000 after acquiring an additional 4,538,007 shares during the last quarter. Finally, Geode Capital Management LLC lifted its position in DraftKings by 2.1% during the fourth quarter. Geode Capital Management LLC now owns 9,494,860 shares of the company’s stock valued at $326,394,000 after acquiring an additional 192,160 shares during the last quarter. Institutional investors own 37.70% of the company’s stock.

Key Stories Impacting DraftKings

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: Company reported 43% year‑over‑year revenue growth and said it posted record revenue and adjusted EBITDA for the quarter — underlying demand remains strong. DraftKings Reports Fourth Quarter Revenue Growth of 43%
• Positive Sentiment: Quarterly revenue of about $1.99B slightly topped consensus (~$1.96B), showing continued top‑line acceleration (+42.8% Y/Y). DraftKings Press Release / Slide Deck
• Neutral Sentiment: The company outlined ambitious plans to scale its prediction‑markets business in 2026 — this could drive long‑term growth but requires near‑term investment. DraftKings Shares Lofty Prediction Markets Goals in 2026 Outlook
• Neutral Sentiment: Pre‑earnings analyst pieces highlighted the stock’s stretched technicals and the potential for an earnings‑driven reversal; these previews increased attention but did not change fundamentals. DraftKings Set To Report Q4 Earnings: What To Watch
• Negative Sentiment: Reported EPS of $0.36 missed consensus (Zacks/Street ~ $0.45–$0.50), despite the revenue beat — the earnings miss disappointed investors focused on near‑term profitability. DraftKings (DKNG) Misses Q4 Earnings and Revenue Estimates
• Negative Sentiment: FY‑2026 revenue guidance of roughly $6.5B–$6.9B came in below the street (~$7.3B), signaling slower near‑term growth than analysts expected and prompting downward revisions. DraftKings (DKNG) Reports Q4 Earnings: What Key Metrics Have to Say
• Negative Sentiment: Bernstein trimmed its price target (from $41 to $32) ahead of results — analysts are recalibrating models after the mixed results and conservative guidance. What is the Street Saying About DraftKings Inc. (DKNG)?
• Negative Sentiment: Technicals: analysts noted the stock was trading near multi‑year lows ahead of the print, increasing downside sensitivity to any disappointment. DraftKings Stock Near 2-Year Lows Ahead of Earnings

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.