Citigroup Has Lowered Expectations for DraftKings (NASDAQ:DKNG) Stock Price

DraftKings (NASDAQ:DKNG) had its price objective reduced by analysts at Citigroup from $48.00 to $32.00 in a report released on Tuesday,Benzinga reports. The firm presently has a “buy” rating on the stock. Citigroup’s price objective indicates a potential upside of 37.87% from the company’s current price.

A number of other equities analysts have also recently weighed in on DKNG. Barclays reduced their price target on DraftKings from $44.00 to $37.00 and set an “overweight” rating for the company in a report on Tuesday. Needham & Company LLC cut their price objective on DraftKings from $52.00 to $35.00 and set a “buy” rating for the company in a research report on Tuesday. JPMorgan Chase & Co. decreased their target price on DraftKings from $51.00 to $42.00 and set an “overweight” rating on the stock in a research report on Monday, November 10th. Sanford C. Bernstein set a $28.00 price target on shares of DraftKings in a research note on Monday. Finally, Guggenheim set a $37.00 price target on shares of DraftKings in a report on Tuesday. Twenty-four analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $37.89.

DraftKings Stock Up 2.7%

DKNG stock opened at $23.21 on Tuesday. DraftKings has a one year low of $21.01 and a one year high of $51.15. The company has a debt-to-equity ratio of 2.91, a quick ratio of 1.09 and a current ratio of 1.03. The firm’s fifty day moving average is $31.47 and its 200 day moving average is $35.73. The firm has a market cap of $11.44 billion, a PE ratio of -580.25, a P/E/G ratio of 0.45 and a beta of 1.67.

Insiders Place Their Bets

In other DraftKings news, insider R Stanton Dodge sold 52,777 shares of the 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 completion of 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 position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Harry Sloan bought 100,000 shares of the stock in a transaction dated Tuesday, February 17th. The shares were bought at an average price of $21.85 per share, for a total transaction of $2,185,000.00. Following the completion of the acquisition, the director owned 350,219 shares in the company, valued at approximately $7,652,285.15. The trade was a 39.96% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 51.19% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On DraftKings

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Dagco Inc. acquired a new stake in shares of DraftKings in the 4th quarter worth $26,000. Ameriflex Group Inc. grew its holdings in shares of DraftKings by 100.0% in the third quarter. Ameriflex Group Inc. now owns 810 shares of the company’s stock valued at $30,000 after purchasing an additional 405 shares during the period. Root Financial Partners LLC purchased a new stake in shares of DraftKings in the third quarter valued at about $33,000. Asset Dedication LLC acquired a new stake in DraftKings during the third quarter worth about $37,000. Finally, Atlantic Union Bankshares Corp purchased a new position in DraftKings during the second quarter worth about $45,000. Institutional investors and hedge funds own 37.70% of the company’s stock.

DraftKings News Summary

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: Barclays put a “buy” on DraftKings, providing an institutional validation that likely supported the rally. DraftKings (DKNG) Gets a Buy from Barclays
• Positive Sentiment: Director Harry Sloan bought 100,000 shares (~$2.185M) and increased his stake by ~40% — a strong insider signal that can boost investor confidence. SEC Filing
• Positive Sentiment: Meridian Hedged Equity Fund (ArrowMark Partners) reiterated confidence in DraftKings’ earnings outlook, signaling institutional support for the company’s fundamentals. Meridian Hedged Equity Fund Remains Confident
• Positive Sentiment: Market commentary flagged DraftKings as “discounted” by some Street participants, which can attract value‑seeking buyers given the company’s upside in many analyst models. Wall Street Flags Discounted DraftKings Stock
• Neutral Sentiment: An analyst roundup notes mixed opinions on consumer‑cyclical names including DraftKings — reflects divergent views across firms and explains volatility as investors weigh conflicting signals. Analysts’ Opinions Are Mixed
• Negative Sentiment: Multiple major brokers (Goldman, JPMorgan, Citi, Truist, Oppenheimer, Needham, Mizuho and others) cut price targets — in many cases significantly — while generally maintaining buy/overweight/outperform ratings. That lowers near‑term upside expectations and adds downward pressure even as analysts retain constructive longer‑term views. Benzinga coverage of analyst updates Truist price target cut (example)
• Negative Sentiment: A BayStreet column warns investors to “beware” of DraftKings, highlighting downside risks that could pressure sentiment among retail investors. Beware of Pinterest and DraftKings

About DraftKings

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.