DraftKings (NASDAQ:DKNG) Hits New 12-Month Low Following Analyst Downgrade

Shares of DraftKings Inc. (NASDAQ:DKNG) hit a new 52-week low on Wednesday after Zacks Research downgraded the stock from a hold rating to a strong sell rating. The stock traded as low as $18.50 and last traded at $18.7550, with a volume of 6,669,281 shares trading hands. The stock had previously closed at $19.72.

Several other research firms also recently issued reports on DKNG. Bank of America raised shares of DraftKings from a “neutral” rating to a “buy” rating and set a $27.00 price target on the stock in a research note on Monday, October 5th. Morgan Stanley decreased their price objective on shares of DraftKings from $39.00 to $36.00 and set an “overweight” rating for the company in a research report on Thursday, July 23rd. Stifel Nicolaus decreased their price objective on shares of DraftKings from $40.00 to $38.00 and set a “buy” rating for the company in a research report on Wednesday, July 22nd. Deutsche Bank Aktiengesellschaft raised their target price on DraftKings from $26.00 to $28.00 and gave the company a “hold” rating in a research note on Thursday, July 9th. Finally, Citizens Jmp dropped their target price on DraftKings from $37.00 to $35.00 and set a “market outperform” rating on the stock in a research report on Thursday, September 24th. One equities research analyst has rated the stock with a Strong Buy rating, thirty have issued a Buy rating, six have given a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $33.70.

Insider Transactions at DraftKings

In other news, Director Jocelyn Moore sold 10,759 shares of the business’s stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $24.05, for a total value of $258,753.95. Following the completion of the sale, the director owned 1,881 shares of the company’s stock, valued at approximately $45,238.05. The trade was a 85.12% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 47.18% of the stock is owned by corporate insiders.

More DraftKings News

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: DraftKings’ derivatives exchange, DKeX, self-certified protected NBA player-proposition contracts. The move could expand its event-contract offering and strengthen its position as prediction markets grow. DraftKings Stock Has Catalysts, DKeX Self-Certifies Protected NBA Player Props
• Positive Sentiment: Potential growth in sports-betting advertising, including a prospective industry-wide advertising battle estimated at $7 billion, could provide DraftKings with additional customer-acquisition and brand-building opportunities. What Does DraftKings Mean for a Potential $7 Billion Betting Ad War?
• Positive Sentiment: DraftKings offers a 5.3% free-cash-flow yield, above the S&P 500 median cited by Trefis, which may appeal to value-oriented investors if the company can stabilize growth and profitability. Why Are Investors Paying So Little For DraftKings Stock’s Cash?
• Neutral Sentiment: DraftKings is attracting more betting activity: sports consumer volume rose 15% to $13.1 billion in the second quarter. However, revenue fell about 5% to $1.44 billion, showing that higher wagering volume has not yet translated into stronger monetization. DraftKings Is Attracting More Bettors. Why Are Earnings Falling?
• Negative Sentiment: Jefferies reduced its 2026 adjusted-earnings forecast by 15%, citing slower iGaming growth and an expected additional $100 million of prediction-market spending in the second half of 2026. DraftKings Faces Earnings Pressure as Prediction Market Spending Rises
• Negative Sentiment: Prediction-market competition, regulatory uncertainty and recent estimate reductions remain major risks. Zacks Research also downgraded DraftKings from “hold” to “strong sell,” adding pressure to investor sentiment.

Hedge Funds Weigh In On DraftKings

A number of large investors have recently bought and sold shares of DKNG. Janus Henderson Group PLC boosted its stake in DraftKings by 50.8% during the 4th quarter. Janus Henderson Group PLC now owns 25,313,909 shares of the company’s stock valued at $858,893,000 after purchasing an additional 8,524,923 shares during the period. Spruce House Investment Management LLC boosted its position in shares of DraftKings by 129.6% during 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 purchasing an additional 5,446,166 shares in the last quarter. Eminence Capital LP increased its holdings in shares of DraftKings by 34.3% in the fourth quarter. Eminence Capital LP now owns 8,426,755 shares of the company’s stock valued at $290,386,000 after buying an additional 2,151,892 shares in the last quarter. Bank of New York Mellon Corp purchased a new stake in shares of DraftKings during the second quarter valued at $24,014,000. Finally, Renaissance Technologies LLC acquired a new position in shares of DraftKings in the first quarter worth about $17,660,000. Institutional investors own 37.70% of the company’s stock.

DraftKings Stock Up 2.2%

The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 3.22. The company has a 50-day moving average price of $22.85 and a 200 day moving average price of $24.00.

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

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.