Canaccord Genuity Group Has Lowered Expectations for DraftKings (NASDAQ:DKNG) Stock Price

DraftKings (NASDAQ:DKNG) had its price target reduced by analysts at Canaccord Genuity Group from $54.00 to $50.00 in a research note issued on Tuesday, Marketbeat reports. The firm currently has a “buy” rating on the stock. Canaccord Genuity Group’s price objective would indicate a potential upside of 83.62% from the company’s previous close.

Other equities analysts have also recently issued reports about the company. BMO Capital Markets reduced their target price on DraftKings from $65.00 to $63.00 and set an “outperform” rating on the stock in a research note on Tuesday, November 4th. Weiss Ratings reiterated a “sell (d-)” rating on shares of DraftKings in a report on Wednesday, January 21st. JPMorgan Chase & Co. decreased their price objective on shares of DraftKings from $51.00 to $42.00 and set an “overweight” rating for the company in a report on Monday, November 10th. Bank of America cut shares of DraftKings from a “buy” rating to a “neutral” rating and dropped their target price for the stock from $48.00 to $35.00 in a research report on Tuesday, November 4th. Finally, Redburn Partners set a $35.00 price target on shares of DraftKings in a research report on Friday, January 30th. Twenty-three investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $46.10.

DraftKings Stock Performance

Shares of NASDAQ:DKNG opened at $27.23 on Tuesday. The company has a current ratio of 1.10, a quick ratio of 1.09 and a debt-to-equity ratio of 2.51. The company has a 50-day moving average price of $33.35 and a 200-day moving average price of $37.11. The company has a market cap of $13.55 billion, a price-to-earnings ratio of -47.77, a price-to-earnings-growth ratio of 0.46 and a beta of 1.67. DraftKings has a 12 month low of $25.73 and a 12 month high of $53.61.

DraftKings (NASDAQ:DKNG) last posted its earnings results on Friday, November 7th. The company reported ($0.26) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.01 by ($0.27). DraftKings had a negative return on equity of 22.84% and a negative net margin of 4.90%.The business had revenue of $1.14 billion during the quarter, compared to the consensus estimate of $1.40 billion. During the same period in the previous year, the business earned ($0.60) earnings per share. The firm’s revenue for the quarter was up 4.4% compared to the same quarter last year. As a group, equities analysts anticipate that DraftKings will post 0.64 EPS for the current year.

Insider Buying and Selling at DraftKings

In other DraftKings news, insider R Stanton Dodge sold 52,777 shares of the company’s stock in a transaction dated Tuesday, January 20th. The shares were sold at an average price of $32.01, for a total value of $1,689,391.77. Following the sale, the insider owned 500,000 shares in the company, valued at approximately $16,005,000. This represents a 9.55% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Alan Wayne Ellingson sold 8,421 shares of the firm’s stock in a transaction that occurred on Friday, November 14th. The shares were sold at an average price of $29.23, for a total transaction of $246,145.83. Following the transaction, the chief financial officer directly owned 126,990 shares of the company’s stock, valued at $3,711,917.70. This represents a 6.22% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 113,975 shares of company stock worth $3,721,511. Insiders own 51.19% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Dagco Inc. purchased a new stake in shares of DraftKings in the fourth quarter worth $26,000. Ameriflex Group Inc. raised its position in shares of DraftKings by 100.0% in the 3rd quarter. Ameriflex Group Inc. now owns 810 shares of the company’s stock worth $30,000 after purchasing an additional 405 shares during the last quarter. Root Financial Partners LLC purchased a new stake in DraftKings during the 3rd quarter valued at about $33,000. Asset Dedication LLC bought a new stake in DraftKings during the 3rd quarter valued at about $37,000. Finally, Atlantic Union Bankshares Corp bought a new position in shares of DraftKings in the second quarter worth approximately $45,000. Hedge funds and other institutional investors own 37.70% of the company’s stock.

Key Headlines Impacting DraftKings

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: Super Bowl betting buzz is driving higher retail interest and short-term handle expectations for DraftKings; coverage also mentions controversy in prediction markets but the immediate market reaction has been to bid the stock on increased wagering activity. DraftKings stock rises amid Super Bowl betting buzz, prediction market controversy
• Positive Sentiment: Shares recovered from a 52-week low in recent trading and showed a premarket bounce, suggesting short-covering and dip-buying interest among investors. DraftKings Stock Recovers After Hitting 52-Week Low
• Neutral Sentiment: Canaccord lowered its price target from $54 to $50 but kept a “buy” rating, signaling continued long-term confidence despite trimming near-term assumptions — this is mixed for immediate price momentum. Canaccord price-target change
• Neutral Sentiment: Elevated search and screening activity (Zacks note) shows the stock is drawing investor attention, which can amplify volatility but doesn’t by itself change fundamentals. Investors Heavily Search DraftKings
• Negative Sentiment: Large institutional selling: Cathie Wood/ARK sold about $21M of DraftKings shares, which puts upward pressure on supply and can weigh on near-term sentiment. The same article notes a separate Nevada lawsuit against Coinbase over sports contracts — a reminder of regulatory/legal risk in the sports-betting ecosystem. Nevada sues Coinbase; Cathie Wood sells DraftKings
• Negative Sentiment: Analyst downgrade: Truist cut DraftKings from “strong-buy” to “hold,” reducing conviction from a segment of sell-side coverage and likely damping near-term momentum. Truist downgrade / Zacks

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.