Benchmark Cuts DraftKings (NASDAQ:DKNG) Price Target to $43.00

DraftKings (NASDAQ:DKNG) had its target price decreased by Benchmark from $53.00 to $43.00 in a report published on Thursday,Benzinga reports. Benchmark currently has a buy rating on the stock.

DKNG has been the subject of a number of other reports. JPMorgan Chase & Co. assumed coverage on shares of DraftKings in a research report on Monday, June 23rd. They issued an “overweight” rating and a $50.00 target price for the company. Sanford C. Bernstein assumed coverage on shares of DraftKings in a report on Wednesday, June 4th. They issued an “outperform” rating and a $46.00 price objective for the company. Northland Securities reissued an “under perform” rating and issued a $33.00 target price (down from $53.00) on shares of DraftKings in a research note on Wednesday. Morgan Stanley reissued an “overweight” rating and set a $52.00 price objective (up previously from $51.00) on shares of DraftKings in a research note on Friday, July 11th. Finally, BTIG Research reduced their price target on DraftKings from $53.00 to $45.00 and set a “buy” rating on the stock in a report on Thursday. Twenty-six research analysts have rated the stock with a Buy rating, one has given a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, DraftKings currently has an average rating of “Moderate Buy” and an average target price of $53.89.

DraftKings Price Performance

NASDAQ:DKNG opened at $35.37 on Thursday. The stock has a 50 day moving average of $44.25 and a two-hundred day moving average of $39.80. DraftKings has a 12 month low of $29.64 and a 12 month high of $53.61. The firm has a market cap of $17.56 billion, a P/E ratio of -54.42, a price-to-earnings-growth ratio of 0.93 and a beta of 1.99. The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 1.82.

DraftKings (NASDAQ:DKNG) last released its earnings results on Thursday, August 7th. The company reported $0.30 earnings per share for the quarter, beating the consensus estimate of $0.16 by $0.14. DraftKings had a negative return on equity of 30.06% and a negative net margin of 5.63%.The business had revenue of $1.51 billion for the quarter, compared to the consensus estimate of $1.39 billion. During the same quarter last year, the business posted $0.12 earnings per share. The business’s quarterly revenue was up 36.9% compared to the same quarter last year. DraftKings has set its FY 2025 guidance at EPS. On average, analysts expect that DraftKings will post 0.64 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider R Stanton Dodge sold 105,554 shares of the company’s 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 sale, the insider directly owned 512,181 shares of the company’s stock, valued at $24,262,013.97. This represents a 17.09% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Ryan R. Moore sold 76,390 shares of the firm’s stock in a transaction that occurred on Thursday, August 21st. The stock was sold at an average price of $45.92, for a total value of $3,507,828.80. Following the transaction, the director owned 402 shares in the company, valued at $18,459.84. This represents a 99.48% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 658,331 shares of company stock worth $29,285,365. Corporate insiders own 51.19% of the company’s stock.

Hedge Funds Weigh In On DraftKings

A number of institutional investors have recently modified their holdings of DKNG. Norges Bank acquired a new stake in DraftKings during the 2nd quarter worth $362,554,000. AQR Capital Management LLC raised its holdings in shares of DraftKings by 2,138.9% in the first quarter. AQR Capital Management LLC now owns 4,696,244 shares of the company’s stock valued at $155,962,000 after buying an additional 4,486,488 shares during the last quarter. Brown Advisory Inc. boosted its stake in shares of DraftKings by 53,272.1% during the second quarter. Brown Advisory Inc. now owns 4,056,280 shares of the company’s stock worth $173,974,000 after buying an additional 4,048,680 shares during the period. Eminence Capital LP grew its holdings in shares of DraftKings by 195.2% during the first quarter. Eminence Capital LP now owns 5,178,083 shares of the company’s stock worth $171,964,000 after buying an additional 3,423,909 shares during the last quarter. Finally, Nuveen LLC acquired a new position in DraftKings in the 1st quarter valued at about $107,739,000. 37.70% of the stock is owned by institutional investors and hedge funds.

DraftKings Company Profile

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.