DraftKings (NASDAQ:DKNG) Cut to “Hold” at Truist Financial

Truist Financial cut shares of DraftKings (NASDAQ:DKNG) from a strong-buy rating to a hold rating in a research note released on Tuesday,Zacks.com reports.

A number of other equities research analysts have also recently commented on the stock. Wells Fargo & Company initiated coverage on shares of DraftKings in a report on Tuesday, November 18th. They issued an “equal weight” rating and a $31.00 target price for the company. Susquehanna set a $44.00 price target on DraftKings in a research note on Tuesday, January 27th. Guggenheim lowered their price objective on shares of DraftKings from $45.00 to $42.00 and set a “buy” rating on the stock in a research report on Thursday, January 29th. JPMorgan Chase & Co. dropped their price objective on shares of DraftKings from $51.00 to $42.00 and set an “overweight” rating on the stock in a research note on Monday, November 10th. Finally, Bank of America cut shares of DraftKings from a “buy” rating to a “neutral” rating and reduced their target price for the stock from $48.00 to $35.00 in a research note on Tuesday, November 4th. Twenty-three investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $46.10.

DraftKings Price Performance

Shares of NASDAQ DKNG opened at $25.52 on Tuesday. The stock has a market cap of $12.70 billion, a P/E ratio of -44.77, a P/E/G ratio of 0.47 and a beta of 1.67. DraftKings has a twelve month low of $25.01 and a twelve month high of $53.61. The stock has a 50 day moving average of $33.22 and a two-hundred day moving average of $37.03. The company has a current ratio of 1.10, a quick ratio of 1.09 and a debt-to-equity ratio of 2.51.

DraftKings (NASDAQ:DKNG) last released its quarterly earnings results on Friday, November 7th. The company reported ($0.26) EPS for the quarter, missing the consensus estimate of $0.01 by ($0.27). The business had revenue of $1.14 billion during the quarter, compared to analysts’ expectations of $1.40 billion. DraftKings had a negative net margin of 4.90% and a negative return on equity of 22.84%. The firm’s revenue for the quarter was up 4.4% compared to the same quarter last year. During the same quarter last year, the company earned ($0.60) EPS. On average, research analysts forecast that DraftKings will post 0.64 earnings per share for the current year.

Insider Activity at DraftKings

In related news, CFO Alan Wayne Ellingson sold 8,421 shares of the business’s stock in a transaction dated Friday, November 14th. The shares were sold at an average price of $29.23, for a total transaction of $246,145.83. Following the sale, the chief financial officer owned 126,990 shares of the company’s stock, valued at approximately $3,711,917.70. The trade was a 6.22% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, 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 transaction of $1,689,391.77. Following the completion of the transaction, 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. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 113,975 shares of company stock worth $3,721,511 over the last three months. 51.19% of the stock is currently owned by company insiders.

Institutional Trading of DraftKings

A number of institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. raised its stake in shares of DraftKings by 3.1% during the 4th quarter. Vanguard Group Inc. now owns 44,758,204 shares of the company’s stock worth $1,542,368,000 after buying an additional 1,354,457 shares during the last quarter. Viking Global Investors LP purchased a new position in DraftKings during the 3rd quarter valued at about $561,125,000. AQR Capital Management LLC raised its position in 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 acquiring an additional 4,538,007 shares during the last quarter. Geode Capital Management LLC lifted its holdings in shares of DraftKings by 5.4% in the second quarter. Geode Capital Management LLC now owns 9,014,088 shares of the company’s stock valued at $385,552,000 after purchasing an additional 458,452 shares in the last quarter. Finally, Norges Bank acquired a new stake in shares of DraftKings in the second quarter valued at approximately $362,554,000. 37.70% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting DraftKings

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: Super Bowl betting buzz lifted short-term demand for DraftKings’ sportsbook, giving the stock a temporary pop amid heightened user activity and wagering headlines. DraftKings stock rises amid Super Bowl betting buzz, prediction market controversy
• Positive Sentiment: DraftKings signed new office space in Raleigh as it expands footprint in North Carolina—a modest operational positive signaling market build-out where sports betting is growing. DraftKings leases space in Raleigh as sports betting takes root in North Carolina
• Neutral Sentiment: Analyst commentary is mixed: some Wall Street notes remain constructive or neutral, but the consensus tone is cautious; these reports are keeping volatility high ahead of earnings. Is DraftKings (DKNG) a Buy as Wall Street Analysts Look Optimistic?
• Neutral Sentiment: Zacks preview says DraftKings may not have the setup for an earnings beat next week—this tempers upside expectations even if top-line growth continues. DraftKings (DKNG) Earnings Expected to Grow: What to Know Ahead of Next Week’s Release
• Negative Sentiment: A short seller flagged mounting competition from Kalshi’s prediction markets as a structural risk to DraftKings’ pricing and market share—this increased investor concern about future revenue and margins. DraftKings faces mounting competition from Kalshi prediction markets, says short seller
• Negative Sentiment: Several sell-side notes and media pieces (including a “3 Reasons to Sell” feature) argue slowing user growth, margin pressure and valuation risk—pressuring sentiment and driving downgrades. 3 Reasons to Sell DKNG and 1 Stock to Buy Instead
• Negative Sentiment: Recent analyst downgrades and lowered price targets (Truist, Canaccord and others) helped push the stock to a new one‑year low and signaled reduced near-term upside. DraftKings (NASDAQ:DKNG) Reaches New 1-Year Low on Analyst Downgrade Canaccord Genuity Has Lowered Expectations for DraftKings
• Negative Sentiment: High-profile selling (reported Cathie Wood sale of ~$21M) and coverage highlighting sluggish growth and margin strain add to negative momentum and investor caution. Nevada sues Coinbase…Cathie Wood sells $21 mil of 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.