Citigroup Issues Pessimistic Forecast for DraftKings (NASDAQ:DKNG) Stock Price

DraftKings (NASDAQ:DKNG) had its target price lowered by analysts at Citigroup from $32.00 to $28.00 in a note issued to investors on Monday, Benzinga reports. The brokerage presently has a “buy” rating on the stock. Citigroup’s price target suggests a potential upside of 42.42% from the stock’s current price.

Other equities research analysts also recently issued reports about the company. Stifel Nicolaus decreased their price objective on DraftKings from $40.00 to $38.00 and set a “buy” rating on the stock in a report on Wednesday, July 22nd. Deutsche Bank Aktiengesellschaft increased their target price on DraftKings from $26.00 to $28.00 and gave the stock a “hold” rating in a report on Thursday, July 9th. UBS Group cut their target price on DraftKings from $49.00 to $48.00 and set a “buy” rating for the company in a research report on Friday, September 18th. TD Cowen boosted their price target on DraftKings from $30.00 to $35.00 and gave the company a “buy” rating in a research note on Friday, July 10th. Finally, Weiss Ratings cut DraftKings from a “sell (d)” rating to a “sell (e+)” rating in a research report on Friday, August 21st. One analyst has rated the stock with a Strong Buy rating, thirty have given a Buy rating, seven have given a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $33.70.

DraftKings Price Performance

NASDAQ DKNG traded up $0.08 on Monday, reaching $19.66. The company’s stock had a trading volume of 10,153,054 shares, compared to its average volume of 13,604,860. The firm has a market cap of $9.76 billion, a PE ratio of -51.74, a price-to-earnings-growth ratio of 1.97 and a beta of 1.61. The business has a 50-day moving average price of $23.12 and a 200 day moving average price of $24.06. DraftKings has a 52 week low of $18.52 and a 52 week high of $36.98. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 3.22.

DraftKings (NASDAQ:DKNG) last posted its quarterly earnings results on Friday, August 7th. The company reported $0.09 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.02 by $0.07. The firm had revenue of $1.44 billion during the quarter, compared to analyst estimates of $1.51 billion. DraftKings had a negative net margin of 2.68% and a negative return on equity of 11.26%. The company’s quarterly revenue was down 4.6% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.30 earnings per share. Sell-side analysts expect that DraftKings will post 0.40 EPS for the current year.

Insider Activity at DraftKings

In other news, Director Jocelyn Moore sold 10,759 shares of the firm’s stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $24.05, for a total value of $258,753.95. Following the completion of the sale, the director directly owned 1,881 shares in the company, valued at approximately $45,238.05. This trade represents a 85.12% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 47.18% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Janus Henderson Group PLC grew its holdings in DraftKings by 50.8% during the 4th quarter. Janus Henderson Group PLC now owns 25,313,909 shares of the company’s stock worth $858,893,000 after acquiring an additional 8,524,923 shares during the last quarter. Spruce House Investment Management LLC increased its position in DraftKings by 129.6% in the 1st 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. Eminence Capital LP increased its position in DraftKings by 34.3% in the 4th quarter. Eminence Capital LP now owns 8,426,755 shares of the company’s stock valued at $290,386,000 after acquiring an additional 2,151,892 shares in the last quarter. Bank of New York Mellon Corp acquired a new stake in DraftKings in the 2nd quarter valued at about $24,014,000. Finally, Renaissance Technologies LLC bought a new position in shares of DraftKings in the first quarter worth about $17,660,000. 37.70% of the stock is owned by institutional investors.

DraftKings Company Profile

DraftKings Inc is a digital sports entertainment and gaming company that provides online sports betting, daily fantasy sports and internet-based casino gaming. Its products are delivered through mobile applications and websites, allowing customers to wager on professional and collegiate sports, participate in fantasy contests and play a range of casino games where permitted by law.

The company also offers sports and betting-related content through DraftKings Network and operates additional gaming and entertainment products, including online lottery services in select markets.