Barclays Cuts DraftKings (NASDAQ:DKNG) Price Target to $40.00

DraftKings (NASDAQ:DKNG) had its target price cut by research analysts at Barclays from $54.00 to $40.00 in a research report issued on Monday,Benzinga reports. The brokerage presently has an “overweight” rating on the stock. Barclays‘s target price would suggest a potential upside of 29.43% from the company’s current price.

Several other equities research analysts have also issued reports on DKNG. BTIG Research decreased their price target on shares of DraftKings from $45.00 to $42.00 and set a “buy” rating on the stock in a report on Friday. UBS Group lowered their target price on DraftKings from $58.00 to $56.00 and set a “buy” rating for the company in a report on Wednesday, September 24th. Northland Securities upgraded DraftKings from an “under perform” rating to a “market perform” rating in a report on Monday. Deutsche Bank Aktiengesellschaft set a $47.00 price objective on shares of DraftKings and gave the company a “hold” rating in a report on Friday, August 8th. Finally, Sanford C. Bernstein reduced their target price on shares of DraftKings from $50.00 to $41.00 and set an “outperform” rating on the stock in a report on Monday. Twenty-six research analysts have rated the stock with a Buy rating, three have issued a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $48.93.

DraftKings Stock Up 1.7%

NASDAQ DKNG traded up $0.51 on Monday, reaching $30.91. The company had a trading volume of 16,649,546 shares, compared to its average volume of 11,699,496. The company has a debt-to-equity ratio of 1.82, a quick ratio of 1.34 and a current ratio of 1.34. The firm has a market capitalization of $15.34 billion, a price-to-earnings ratio of -54.08, a price-to-earnings-growth ratio of 1.03 and a beta of 1.86. DraftKings has a 1-year low of $26.23 and a 1-year high of $53.61. The company’s fifty day moving average is $37.88 and its 200-day moving average is $39.48.

DraftKings (NASDAQ:DKNG) last posted its earnings results on Thursday, November 6th. The company reported ($0.26) EPS for the quarter, missing the consensus estimate of $0.01 by ($0.27). The firm had revenue of $1.14 billion during the quarter, compared to analyst estimates of $1.40 billion. DraftKings had a negative net margin of 4.90% and a negative return on equity of 21.47%. DraftKings’s revenue for the quarter was up 4.4% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.60) EPS. DraftKings has set its FY 2025 guidance at EPS. On average, research analysts forecast that DraftKings will post 0.64 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other DraftKings news, Director Jocelyn Moore sold 4,861 shares of the stock in a transaction dated Wednesday, August 13th. The stock was sold at an average price of $43.21, for a total transaction of $210,043.81. Following the completion of the sale, the director directly owned 1,461 shares in the company, valued at approximately $63,129.81. This trade represents a 76.89% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider R Stanton Dodge sold 105,554 shares of DraftKings stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $47.37, for a total value of $5,000,092.98. Following the completion of the transaction, the insider directly owned 512,181 shares of the company’s stock, valued at approximately $24,262,013.97. This trade represents a 17.09% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 552,777 shares of company stock valued at $23,337,924 over the last quarter. Company insiders own 47.08% of the company’s stock.

Institutional Trading of DraftKings

Large investors have recently modified their holdings of the stock. Bank of Jackson Hole Trust acquired a new position in shares of DraftKings during the 1st quarter valued at $31,000. Root Financial Partners LLC bought a new stake in DraftKings in the third quarter valued at $33,000. TD Private Client Wealth LLC increased its stake in DraftKings by 54.4% in the second quarter. TD Private Client Wealth LLC now owns 800 shares of the company’s stock valued at $34,000 after purchasing an additional 282 shares in the last quarter. Summit Securities Group LLC raised its holdings in shares of DraftKings by 349.1% during the first quarter. Summit Securities Group LLC now owns 1,042 shares of the company’s stock valued at $35,000 after purchasing an additional 810 shares during the period. Finally, AlphaQuest LLC acquired a new position in shares of DraftKings during the third quarter valued at about $41,000. Institutional investors and hedge funds own 37.70% of the company’s stock.

About DraftKings

DraftKings Inc operates as a digital sports entertainment and gaming company in the United States and internationally. It provides online sports betting and casino, daily fantasy sports, media, and other consumer products, as well as retails sportsbooks. The company also engages in the design and development of sports betting and casino gaming software for online and retail sportsbooks, and iGaming operators.