DraftKings (NASDAQ:DKNG) Stock Gets Downgrade from Wells Fargo & Company

Posted by Stanley Muller on Nov 11th, 2026

DraftKings (NASDAQ:DKNG – Get Free Report) was downgraded by analysts at Wells Fargo & Company from an “overweight” rating to an “equal weight” rating in a report issued on Monday, MarketBeat Ratings reports. They presently have a $21.00 target price on the stock, down from their prior target price of $30.00. Wells Fargo & Company‘s price target suggests a potential upside of 8.47% from the company’s current price.

A number of other research firms have also weighed in on DKNG. Jefferies Financial Group reissued a “buy” rating and set a $28.00 target price on shares of DraftKings in a research report on Monday. Truist Financial lowered their price target on DraftKings from $26.00 to $22.00 and set a “buy” rating on the stock in a research report on Monday. Stifel Nicolaus lowered DraftKings from a “buy” rating to a “hold” rating and dropped their price objective for the stock from $32.00 to $21.00 in a research note on Monday. BTIG Research dropped their price objective on DraftKings from $26.00 to $23.00 and set a “buy” rating on the stock in a research note on Monday. Finally, UBS Group cut DraftKings from a “buy” rating to a “neutral” rating and cut their price objective for the stock from $48.00 to $22.00 in a research report on Monday. One investment analyst has rated the stock with a Strong Buy rating, twenty-five have given a Buy rating, ten have given a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $27.61.

View Our Latest Research Report on DKNG

DraftKings Price Performance

Shares of DraftKings stock opened at $19.36 on Monday. The company has a debt-to-equity ratio of 3.22, a quick ratio of 1.02 and a current ratio of 1.02. The firm has a fifty day simple moving average of $21.28 and a 200-day simple moving average of $23.93. DraftKings has a 1-year low of $16.55 and a 1-year high of $36.98.

DraftKings (NASDAQ:DKNG – Get Free Report) last posted its earnings results on Thursday, November 5th. The company reported ($0.53) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.41) by ($0.12). The firm had revenue of $1.33 billion during the quarter, compared to analyst estimates of $1.39 billion. DraftKings had a negative net margin of 5.91% and a negative return on equity of 36.21%. The business’s quarterly revenue was up 16.2% compared to the same quarter last year. During the same quarter in the previous year, the business posted ($0.26) earnings per share. As a group, research analysts expect that DraftKings will post 0.31 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Jocelyn Moore sold 10,759 shares of the company’s stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $24.05, for a total transaction of $258,753.95. Following the completion of the transaction, the director directly owned 1,881 shares in the company, valued at $45,238.05. This represents a 85.12% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Alan Ellingson purchased 18,908 shares of DraftKings stock in a transaction on Monday, November 9th. The stock was bought at an average cost of $18.51 per share, with a total value of $349,987.08. Following the completion of the acquisition, the chief financial officer owned 214,692 shares in the company, valued at approximately $3,973,948.92. This trade represents a 9.66% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 47.18% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Janus Henderson Group PLC lifted its stake in shares of DraftKings by 9.3% in the first quarter. Janus Henderson Group PLC now owns 27,665,699 shares of the company’s stock valued at $588,288,000 after buying an additional 2,351,790 shares during the period. Spruce House Investment Management LLC increased its stake in DraftKings by 129.6% during the first quarter. Spruce House Investment Management LLC now owns 9,650,000 shares of the company’s stock valued at $208,633,000 after acquiring an additional 5,446,166 shares during the period. Swiss National Bank increased its stake in DraftKings by 7.4% during the first quarter. Swiss National Bank now owns 1,314,864 shares of the company’s stock valued at $28,427,000 after acquiring an additional 90,400 shares during the period. Bank of New York Mellon Corp acquired a new position in DraftKings in the 2nd quarter valued at approximately $24,014,000. Finally, Quantinno Capital Management LP raised its holdings in DraftKings by 273.9% in the 1st quarter. Quantinno Capital Management LP now owns 898,241 shares of the company’s stock valued at $19,420,000 after acquiring an additional 658,006 shares in the last quarter. Institutional investors own 37.70% of the company’s stock.

Trending Headlines about DraftKings

Here are the key news stories impacting DraftKings this week:

Positive Sentiment: CFO Alan Ellingson bought 18,908 shares for about $350,000, increasing his ownership by 9.66%. The insider purchase may signal confidence, though it does not resolve the company’s operating challenges. CFO stock purchase
Neutral Sentiment: Citigroup lowered its price target to $22 from $28 but retained a Buy rating, indicating continued potential upside in the firm’s view alongside a more cautious valuation. Citigroup rating and target
Negative Sentiment: DraftKings’ Q3 revenue of $1.33 billion rose 16.2% year over year but missed expectations; its reported loss per share was also wider than analysts expected. The company lowered its 2026 revenue outlook, while increased investment in prediction markets is weighing on profitability and projected EBITDA. Q3 results and outlook
Negative Sentiment: Analysts have continued to downgrade DraftKings or reduce price targets after the results. Wells Fargo cut its rating to Equal Weight and lowered its target to $21 from $30; Berenberg moved to Hold with a $20 target. The revisions point to reduced confidence in the earnings outlook, with scrutiny of prediction markets adding uncertainty. Analyst downgrades

About DraftKings

(Get Free Report)

DraftKings Inc. is a digital sports and entertainment company founded in 2012. It began as a daily fantasy sports platform and has since expanded into online sports betting and gaming. The company offers daily fantasy contests, a sportsbook and online casino products, including games such as slots and table games. Its services are available in a range of U.S. jurisdictions and in Ontario, Canada, where permitted by local regulations. DraftKings is headquartered in Boston, Massachusetts. Co-founder Jason Robins serves as the company’s chief executive officer.