Needham & Company LLC Has Lowered Expectations for DraftKings (NASDAQ:DKNG) Stock Price

DraftKings (NASDAQ:DKNG) had its target price reduced by research analysts at Needham & Company LLC from $52.00 to $35.00 in a report released on Tuesday, MarketBeat reports. The brokerage presently has a “buy” rating on the stock. Needham & Company LLC’s target price suggests a potential upside of 50.80% from the company’s current price.

A number of other brokerages also recently weighed in on DKNG. Morgan Stanley increased their price target on shares of DraftKings from $50.00 to $53.00 and gave the company an “overweight” rating in a research report on Friday, January 16th. Bank of America cut their target price on shares of DraftKings from $37.50 to $30.00 and set a “neutral” rating on the stock in a report on Friday, February 13th. BMO Capital Markets reissued an “outperform” rating and set a $42.00 price target on shares of DraftKings in a research report on Friday, February 13th. Truist Financial cut shares of DraftKings from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, February 3rd. Finally, Texas Capital raised DraftKings to a “hold” rating in a research note on Thursday, January 8th. Twenty-four research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $37.89.

DraftKings Stock Up 2.7%

Shares of DraftKings stock opened at $23.21 on Tuesday. The business has a fifty day simple moving average of $31.47 and a 200 day simple moving average of $35.73. The stock has a market cap of $11.44 billion, a PE ratio of -580.25, a price-to-earnings-growth ratio of 0.45 and a beta of 1.67. The company has a quick ratio of 1.09, a current ratio of 1.03 and a debt-to-equity ratio of 2.91. DraftKings has a 12 month low of $21.01 and a 12 month high of $51.15.

Insider Transactions at DraftKings

In other DraftKings news, insider R Stanton Dodge sold 52,777 shares of DraftKings stock in a transaction dated 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 sale, the insider owned 500,000 shares of the company’s stock, valued at $16,005,000. This trade represents a 9.55% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Harry Sloan purchased 100,000 shares of the business’s stock in a transaction dated Tuesday, February 17th. The stock was purchased 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 of the company’s stock, valued at approximately $7,652,285.15. This represents 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 currently owned by corporate insiders.

Institutional Trading of DraftKings

A number of hedge funds and other institutional investors have recently made changes to their positions in DKNG. Dagco Inc. acquired a new position in DraftKings during the fourth quarter worth $26,000. Ameriflex Group Inc. boosted its stake in shares of DraftKings by 100.0% during the 3rd quarter. Ameriflex Group Inc. now owns 810 shares of the company’s stock worth $30,000 after buying an additional 405 shares during the last quarter. Root Financial Partners LLC bought a new position in shares of DraftKings in the 3rd quarter valued at about $33,000. Asset Dedication LLC acquired a new stake in shares of DraftKings in the third quarter valued at about $37,000. Finally, Montag A & Associates Inc. increased its position in shares of DraftKings by 82.5% in the fourth quarter. Montag A & Associates Inc. now owns 1,106 shares of the company’s stock valued at $38,000 after acquiring an additional 500 shares during the last quarter. 37.70% of the stock is currently owned by institutional investors and hedge funds.

Key DraftKings News

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

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.