DraftKings (NASDAQ:DKNG) Stock Moved Down to Equal Weight by Wells Fargo & Company

Wells Fargo & Company downgraded shares of DraftKings (NASDAQ:DKNG) from an overweight rating to an equal weight rating in a report released on Monday morning,FinViz reports. Wells Fargo & Company currently has $21.00 price target on the stock, down from their previous price target of $30.00.

A number of other research analysts have also recently issued reports on DKNG. Susquehanna reaffirmed a “positive” rating and issued a $23.00 price target on shares of DraftKings in a report on Monday. Benchmark increased their price objective on shares of DraftKings from $29.00 to $30.00 and gave the stock a “buy” rating in a report on Friday, August 7th. Zacks Research downgraded shares of DraftKings from a “hold” rating to a “strong sell” rating in a research note on Tuesday, October 13th. Citizens Jmp reduced their target price on shares of DraftKings from $37.00 to $35.00 and set a “market outperform” rating on the stock in a research report on Thursday, September 24th. Finally, Barclays reduced their target price on shares of DraftKings from $34.00 to $27.00 and set an “overweight” rating on the stock in a research report on Monday. One research analyst has rated the stock with a Strong Buy rating, twenty-five have given a Buy rating, nine have assigned a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $28.01.

DraftKings Stock Performance

NASDAQ:DKNG opened at $18.70 on Monday. The stock has a market capitalization of $9.28 billion, a P/E ratio of -23.37, a price-to-earnings-growth ratio of 3.03 and a beta of 1.65. 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 has a 1 year low of $16.55 and a 1 year high of $36.98. The firm has a 50 day moving average of $21.37 and a 200-day moving average of $23.99.

DraftKings (NASDAQ:DKNG) last released its quarterly earnings results on Thursday, November 5th. The company reported ($0.53) EPS for the quarter, missing analysts’ consensus estimates of ($0.41) by ($0.12). The business had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.39 billion. DraftKings had a negative return on equity of 11.26% and a negative net margin of 2.68%. The firm’s revenue was up 16.2% on a year-over-year basis. During the same quarter last year, the company earned ($0.26) earnings per share. As a group, sell-side analysts anticipate that DraftKings will post 0.31 EPS for the current fiscal year.

Insider Transactions at DraftKings

In related news, Director Jocelyn Moore sold 10,759 shares of the company’s stock in a transaction dated 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 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 document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Alan Ellingson bought 18,908 shares of the business’s stock in a transaction on Monday, November 9th. The stock was bought at an average cost of $18.51 per share, for a total transaction of $349,987.08. Following the purchase, the chief financial officer directly owned 214,692 shares of the company’s stock, valued at approximately $3,973,948.92. This trade represents a 9.66% increase in their position. The SEC filing for this purchase provides additional information. Corporate insiders own 47.18% of the company’s stock.

Institutional Trading of DraftKings

A number of institutional investors and hedge funds have recently modified their holdings of DKNG. Spruce House Investment Management LLC grew its holdings in DraftKings by 129.6% during 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 purchasing an additional 5,446,166 shares during the period. Janus Henderson Group PLC raised its holdings in DraftKings by 9.3% in the first quarter. Janus Henderson Group PLC now owns 27,665,699 shares of the company’s stock worth $588,288,000 after purchasing an additional 2,351,790 shares during the period. Bank of New York Mellon Corp acquired a new stake in DraftKings in the second quarter worth $24,014,000. Renaissance Technologies LLC bought a new position in shares of DraftKings during the first quarter worth $17,660,000. Finally, Quantinno Capital Management LP boosted its position in shares of DraftKings by 273.9% during the first quarter. Quantinno Capital Management LP now owns 898,241 shares of the company’s stock worth $19,420,000 after purchasing an additional 658,006 shares in the last quarter. 37.70% of the stock is owned by institutional investors.

Trending Headlines about DraftKings

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: CFO Alan Ellingson bought 18,908 shares for about $350,000, increasing his stake by 9.66%. The purchase may signal confidence from an executive, though it does not offset the company’s operating challenges. SEC filing
• Neutral Sentiment: Some analysts retained Buy or similar ratings despite cutting their targets, suggesting they still see potential upside if DraftKings executes. Separately, reports point to rising hopes for legal sports betting in Texas, although prediction-market activity is drawing scrutiny. Texas betting hopes and prediction markets
• Negative Sentiment: Third-quarter revenue rose 16% year over year but missed expectations, and adjusted earnings were also worse than forecast. Higher spending on its new prediction-markets business is weighing on profitability; DraftKings cut its 2026 outlook, while commentary on the 2027 outlook has been mixed. Q3 earnings call highlights
• Negative Sentiment: Analysts including JPMorgan, UBS and Stifel downgraded the stock, and multiple firms cut price targets following the results and guidance. JPMorgan moved its rating to Neutral and lowered its target to $21, reflecting greater concern about the outlook. Analyst downgrades and prediction-market losses
• Negative Sentiment: A shareholder-investigation firm announced it is examining potential securities claims involving DraftKings, adding a legal overhang; the notice does not establish that a claim has merit. Shareholder investigation notice

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.