DraftKings Inc. (NASDAQ:DKNG) Given Average Rating of “Moderate Buy” by Analysts

Shares of DraftKings Inc. (NASDAQ:DKNG) have been assigned a consensus rating of “Moderate Buy” from the forty brokerages that are currently covering the stock, MarketBeat Ratings reports. Two analysts have rated the stock with a sell rating, eight have assigned a hold rating, twenty-nine have issued a buy rating and one has given a strong buy rating to the company. The average 1 year price objective among brokerages that have updated their coverage on the stock in the last year is $34.5613.

A number of research firms have recently commented on DKNG. JPMorgan Chase & Co. raised their target price on DraftKings from $31.00 to $34.00 and gave the company an “overweight” rating in a research note on Wednesday. Morgan Stanley reaffirmed an “overweight” rating on shares of DraftKings in a research note on Thursday, May 21st. Weiss Ratings downgraded DraftKings from a “sell (d+)” rating to a “sell (d)” rating in a report on Monday, May 11th. Sanford C. Bernstein restated an “outperform” rating on shares of DraftKings in a report on Thursday, June 11th. Finally, Deutsche Bank Aktiengesellschaft upped their target price on shares of DraftKings from $26.00 to $28.00 and gave the stock a “hold” rating in a research report on Thursday, July 9th.

Insider Activity

In related news, insider R Stanton Dodge sold 62,500 shares of the business’s stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $29.68, for a total transaction of $1,855,000.00. Following the sale, the insider owned 556,258 shares of the company’s stock, valued at $16,509,737.44. The trade was a 10.10% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Woodrow Levin sold 34,234 shares of the company’s stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $25.71, for a total transaction of $880,156.14. Following the completion of the sale, the director owned 29,820 shares in the company, valued at approximately $766,672.20. This trade represents a 53.45% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 97,596 shares of company stock worth $2,756,991 in the last three months. 47.18% of the stock is currently owned by insiders.

Institutional Investors Weigh In On DraftKings

Several hedge funds have recently added to or reduced their stakes in the stock. Dagco Inc. bought a new position in DraftKings in the 4th quarter worth about $26,000. Ascentis Independent Advisors bought a new position in DraftKings in the 1st quarter valued at approximately $27,000. Basecamp Wealth Advisors LLC lifted its position in DraftKings by 3,547.1% in the 1st quarter. Basecamp Wealth Advisors LLC now owns 1,240 shares of the company’s stock valued at $27,000 after acquiring an additional 1,206 shares in the last quarter. CoreCap Advisors LLC boosted its stake in DraftKings by 336.5% during the 2nd quarter. CoreCap Advisors LLC now owns 1,148 shares of the company’s stock valued at $29,000 after purchasing an additional 885 shares during the last quarter. Finally, Montag A & Associates Inc. increased its holdings in shares of DraftKings by 82.5% in the 4th quarter. Montag A & Associates Inc. now owns 1,106 shares of the company’s stock worth $38,000 after purchasing an additional 500 shares in the last quarter. 37.70% of the stock is owned by institutional investors.

DraftKings News Roundup

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: JPMorgan Chase raised its price target on DraftKings to $34, signaling continued analyst confidence in the stock’s upside potential. DraftKings (NASDAQ:DKNG) Given New $34.00 Price Target at JPMorgan Chase & Co.
• Positive Sentiment: One bullish commentary highlighted that DraftKings’ recent selloff appears out of step with its improving profitability, pointing to a 64% increase in adjusted EBITDA as evidence the business is still executing well. DraftKings: A 40 Percent Selloff Runs Contrary To The 64 Percent Adjusted EBITDA Increase
• Neutral Sentiment: A broader casino-stocks roundup kept DraftKings on investors’ radar, but did not add a major new catalyst specific to the company. Casino Stocks To Keep An Eye On – July 14th
• Neutral Sentiment: DraftKings also announced legal action against Philadelphia after receiving a subpoena, seeking to halt an enforcement probe tied to consumer law issues. While the move may protect the company, it also underscores ongoing regulatory risk. DraftKings sues Philadelphia to end enforcement probe following subpoena, block consumer law
• Negative Sentiment: Short-seller The Bear Cave renewed its bearish case, arguing prediction markets could pull users away from DraftKings’ sportsbook business and that this competitive threat is not fully reflected in the stock price. Bear Cave Renews DraftKings Bear Case on Prediction Market Momentum
• Negative Sentiment: DraftKings was also covered in reports noting it fell more than the broader market in the latest session, reflecting continued investor caution around the name. Here's Why DraftKings (DKNG) Fell More Than Broader Market

DraftKings Price Performance

DKNG stock opened at $24.94 on Friday. DraftKings has a 1 year low of $20.46 and a 1 year high of $48.78. The company has a market cap of $12.37 billion, a P/E ratio of 415.67 and a beta of 1.65. The firm has a 50-day moving average of $25.81 and a 200 day moving average of $26.15. The company has a debt-to-equity ratio of 3.03, a current ratio of 1.02 and a quick ratio of 1.02.

DraftKings (NASDAQ:DKNG) last posted its quarterly earnings data on Friday, May 8th. The company reported $0.20 earnings per share for the quarter, missing the consensus estimate of $0.22 by ($0.02). DraftKings had a net margin of 0.93% and a return on equity of 13.51%. The firm had revenue of $1.65 billion for the quarter, compared to the consensus estimate of $1.63 billion. During the same period in the previous year, the firm posted ($0.07) earnings per share. The business’s revenue was up 16.8% compared to the same quarter last year. On average, sell-side analysts forecast that DraftKings will post 0.54 EPS for the current year.

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.