DraftKings (NASDAQ:DKNG) Reaches New 12-Month Low After Analyst Downgrade

DraftKings Inc. (NASDAQ:DKNG) reached a new 52-week low on Friday after BTIG Research lowered their price target on the stock from $45.00 to $37.00. BTIG Research currently has a buy rating on the stock. DraftKings traded as low as $21.01 and last traded at $22.1860, with a volume of 20782520 shares changing hands. The stock had previously closed at $25.16.

A number of other research firms have also recently issued reports on DKNG. Canaccord Genuity Group cut their target price on shares of DraftKings from $50.00 to $44.00 and set a “buy” rating for the company in a research note on Friday. BMO Capital Markets reiterated an “outperform” rating and issued a $42.00 price objective on shares of DraftKings in a research report on Friday. Texas Capital raised DraftKings to a “hold” rating in a research note on Thursday, January 8th. Weiss Ratings restated a “sell (d-)” rating on shares of DraftKings in a report on Wednesday, January 21st. Finally, Northland Securities raised DraftKings from an “under perform” rating to a “market perform” rating in a report on Monday, November 10th. Twenty-three investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $44.14.

Insider Buying and Selling

In other DraftKings news, insider R Stanton Dodge sold 52,777 shares of the company’s stock in a transaction on Tuesday, January 20th. The shares were sold at an average price of $32.01, for a total transaction 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 position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 51.19% of the company’s stock.

DraftKings News Summary

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: Q4 revenue and margin progress — DraftKings reported +43% year‑over‑year revenue and said it achieved record revenue and adjusted EBITDA, signaling strong top‑line growth and improving operating results. DraftKings Reports Fourth Quarter Revenue Growth of 43%
• Positive Sentiment: Some analysts remain constructive — BTIG kept a “buy” rating despite cutting the price target to $37, still implying substantial upside from current levels, which can provide a floor for longer‑term buyers. Benzinga
• Neutral Sentiment: Mixed analyst updates — Benchmark and Bank of America trimmed targets (Benchmark to $29 with a buy, BofA to $30 with neutral). Ratings remain mixed between buy/neutral, leaving analyst coverage supportive but less bullish. TickerReport
• Neutral Sentiment: Earnings call and transcript available — Investors can review management’s Q4 commentary and guidance rationale in the transcript to assess credibility of the company’s longer‑term prediction‑market strategy. Earnings Call Transcript
• Negative Sentiment: EPS missed expectations — DraftKings reported $0.36 EPS vs consensus ~ $0.45, a clear earnings miss that pressured the stock despite revenue growth. MarketBeat Earnings Report
• Negative Sentiment: Cautious FY‑2026 guidance — Management’s revenue guidance came in below consensus (company guided roughly $6.5B–$6.9B vs ~ $7.3B Street estimate), signaling slower near‑term growth and prompting downward revisions. Press Release / Slides
• Negative Sentiment: Prediction‑market risk and regulatory scrutiny — The company’s large prediction‑markets ambitions are drawing regulatory attention (CFTC) and investor skepticism about timing and profitability of that business, adding uncertainty to growth assumptions. WSJ
• Negative Sentiment: High trading volume / selling pressure — The session showed well‑above‑average volume, indicating aggressive repositioning by investors after the miss and guidance, which amplified the downward move. ProactiveInvestors

Hedge Funds Weigh In On DraftKings

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in DKNG. Vanguard Group Inc. increased its stake in shares of DraftKings by 3.1% in the 4th quarter. Vanguard Group Inc. now owns 44,758,204 shares of the company’s stock valued at $1,542,368,000 after acquiring an additional 1,354,457 shares during the last quarter. Capital World Investors increased its stake in DraftKings by 181.4% in the fourth quarter. Capital World Investors now owns 18,626,429 shares of the company’s stock valued at $641,867,000 after purchasing an additional 12,008,357 shares in the last quarter. Viking Global Investors LP acquired a new stake in DraftKings in the third quarter worth $561,125,000. AQR Capital Management LLC boosted its position in shares of DraftKings by 63.5% during the third quarter. AQR Capital Management LLC now owns 11,685,672 shares of the company’s stock worth $437,044,000 after purchasing an additional 4,538,007 shares in the last quarter. Finally, Geode Capital Management LLC grew its holdings in shares of DraftKings by 2.1% in the 4th quarter. Geode Capital Management LLC now owns 9,494,860 shares of the company’s stock valued at $326,394,000 after buying an additional 192,160 shares during the period. Institutional investors own 37.70% of the company’s stock.

DraftKings Stock Performance

The company has a debt-to-equity ratio of 2.51, a quick ratio of 1.09 and a current ratio of 1.10. The stock’s 50-day moving average is $32.22 and its 200 day moving average is $36.20. The firm has a market cap of $10.83 billion, a P/E ratio of -544.00, a PEG ratio of 0.43 and a beta of 1.67.

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.