DraftKings (NASDAQ:DKNG) Reaches New 1-Year Low on Analyst Downgrade

DraftKings Inc. (NASDAQ:DKNG) shares hit a new 52-week low during mid-day trading on Tuesday after Truist Financial downgraded the stock from a strong-buy rating to a hold rating. The stock traded as low as $25.73 and last traded at $26.3380, with a volume of 10502794 shares changing hands. The stock had previously closed at $27.42.

A number of other equities research analysts also recently commented on DKNG. Redburn Partners set a $35.00 price objective on shares of DraftKings in a research report on Friday, January 30th. Berenberg Bank set a $43.00 target price on shares of DraftKings and gave the stock a “buy” rating in a research note on Thursday, October 9th. Citigroup initiated coverage on DraftKings in a research note on Friday, November 21st. They issued a “buy” rating and a $48.00 price target on the stock. Texas Capital raised DraftKings to a “hold” rating in a research report on Thursday, January 8th. Finally, Macquarie cut their target price on DraftKings from $50.00 to $48.00 and set an “outperform” rating on the stock in a research report on Monday, November 10th. Twenty-three research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $46.10.

Insider Transactions at DraftKings

In other DraftKings news, insider R Stanton Dodge sold 52,777 shares of the business’s stock in a transaction that occurred on Tuesday, January 20th. The stock was sold at an average price of $32.01, for a total value of $1,689,391.77. Following the completion of the sale, the insider owned 500,000 shares in the company, valued at approximately $16,005,000. The trade was a 9.55% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Alan Wayne Ellingson sold 8,421 shares of the firm’s stock in a transaction that occurred on Friday, November 14th. The stock was sold at an average price of $29.23, for a total transaction of $246,145.83. Following the transaction, the chief financial officer owned 126,990 shares in the company, valued at approximately $3,711,917.70. This trade represents a 6.22% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 113,975 shares of company stock worth $3,721,511. 51.19% of the stock is currently owned by corporate insiders.

More DraftKings News

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

Hedge Funds Weigh In On DraftKings

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Dagco Inc. purchased a new stake in DraftKings during the 4th quarter valued at approximately $26,000. Ameriflex Group Inc. raised its stake in shares of DraftKings by 100.0% during the third 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 acquired a new stake in shares of DraftKings during the third quarter worth $33,000. Asset Dedication LLC purchased a new position in DraftKings in the 3rd quarter valued at $37,000. Finally, Montag A & Associates Inc. increased its stake in DraftKings by 82.5% in the 4th quarter. Montag A & Associates Inc. now owns 1,106 shares of the company’s stock valued at $38,000 after buying an additional 500 shares during the period. Hedge funds and other institutional investors own 37.70% of the company’s stock.

DraftKings Stock Up 1.8%

The company has a market capitalization of $13.55 billion, a price-to-earnings ratio of -47.77, a PEG ratio of 0.46 and a beta of 1.67. 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 firm’s 50 day simple moving average is $33.35 and its 200-day simple moving average is $37.11.

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

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.