The Goldman Sachs Group Issues Pessimistic Forecast for DraftKings (NASDAQ:DKNG) Stock Price

DraftKings (NASDAQ:DKNG) had its target price decreased by investment analysts at The Goldman Sachs Group from $54.00 to $31.00 in a report released on Tuesday,Benzinga reports. The firm currently has a “buy” rating on the stock. The Goldman Sachs Group’s price objective would suggest a potential upside of 33.56% from the company’s previous close.

Several other research firms also recently weighed in on DKNG. Guggenheim set a $37.00 price target on DraftKings in a report on Tuesday. Citigroup cut their price objective on shares of DraftKings from $48.00 to $32.00 and set a “buy” rating on the stock in a research report on Tuesday. Oppenheimer reduced their target price on shares of DraftKings from $50.00 to $35.00 and set an “outperform” rating on the stock in a research note on Tuesday. Northland Securities set a $24.00 price target on shares of DraftKings in a research note on Tuesday. Finally, Mizuho cut their price target on shares of DraftKings from $46.00 to $44.00 and set an “outperform” rating on the stock in a report on Tuesday. Twenty-four research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $37.89.

DraftKings Trading Up 2.7%

Shares of NASDAQ DKNG opened at $23.21 on Tuesday. DraftKings has a 1-year low of $21.01 and a 1-year high of $51.15. The company has a debt-to-equity ratio of 2.91, a current ratio of 1.03 and a quick ratio of 1.09. The business’s 50 day moving average is $31.47 and its two-hundred day moving average is $35.73. The stock has a market capitalization of $11.44 billion, a P/E ratio of -580.25, a PEG ratio of 0.45 and a beta of 1.67.

Insider Activity at DraftKings

In other news, Director Harry Sloan acquired 100,000 shares of the company’s stock in a transaction that occurred on Tuesday, February 17th. The shares were bought at an average price of $21.85 per share, with a total value of $2,185,000.00. Following the completion of the purchase, the director directly owned 350,219 shares in the company, valued at $7,652,285.15. This trade represents a 39.96% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider R Stanton Dodge sold 52,777 shares of DraftKings stock in a transaction on 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 directly owned 500,000 shares of the company’s stock, valued at approximately $16,005,000. This trade represents a 9.55% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 51.19% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

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

More 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

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.