DraftKings’ (DKNG) “Buy” Rating Reiterated at Needham & Company LLC

Needham & Company LLC reaffirmed their buy rating on shares of DraftKings (NASDAQ:DKNG) in a research report released on Friday, Marketbeat reports. They currently have a $35.00 target price on the stock.

A number of other analysts have also commented on the company. Truist Financial set a $29.00 price objective on DraftKings in a research report on Monday, August 10th. Weiss Ratings downgraded shares of DraftKings from a “sell (d)” rating to a “sell (e+)” rating in a research report on Friday, August 21st. Wall Street Zen lowered shares of DraftKings from a “hold” rating to a “sell” rating in a research note on Saturday, August 15th. Wells Fargo & Company reduced their target price on shares of DraftKings from $32.00 to $29.00 and set an “overweight” rating on the stock in a research note on Monday, July 20th. Finally, Citigroup reiterated a “market outperform” rating on shares of DraftKings in a research report on Tuesday, September 8th. One equities research analyst has rated the stock with a Strong Buy rating, thirty have given a Buy rating, eight have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $34.36.

DraftKings Price Performance

NASDAQ:DKNG opened at $21.75 on Friday. The company has a market cap of $10.80 billion, a price-to-earnings ratio of -57.24, a P/E/G ratio of 1.78 and a beta of 1.63. 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 stock’s fifty day moving average price is $24.32 and its two-hundred day moving average price is $24.57. DraftKings has a 52-week low of $20.46 and a 52-week high of $44.22.

DraftKings (NASDAQ:DKNG) last released its earnings results on Friday, August 7th. The company reported $0.09 EPS for the quarter, beating the consensus estimate of $0.02 by $0.07. DraftKings had a negative return on equity of 11.26% and a negative net margin of 2.68%.The company had revenue of $1.44 billion during the quarter, compared to analysts’ expectations of $1.51 billion. During the same period last year, the firm earned $0.30 EPS. The business’s revenue for the quarter was down 4.6% on a year-over-year basis. On average, analysts anticipate that DraftKings will post 0.49 EPS for the current year.

Insiders Place Their Bets

In other DraftKings news, Director Jocelyn Moore sold 10,759 shares of the stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $24.05, for a total value of $258,753.95. Following the transaction, the director owned 1,881 shares of the company’s stock, valued at approximately $45,238.05. This represents a 85.12% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 47.18% of the company’s stock.

Institutional Trading of DraftKings

A number of institutional investors and hedge funds have recently modified their holdings of DKNG. Renaissance Technologies LLC bought a new stake in DraftKings in the first quarter valued at approximately $17,660,000. Spruce House Investment Management LLC boosted its position in shares of DraftKings by 129.6% during the first quarter. Spruce House Investment Management LLC now owns 9,650,000 shares of the company’s stock worth $208,633,000 after purchasing an additional 5,446,166 shares in the last quarter. Janus Henderson Group PLC boosted its position in shares of DraftKings by 9.3% during the first quarter. Janus Henderson Group PLC now owns 27,665,699 shares of the company’s stock worth $588,288,000 after purchasing an additional 2,351,790 shares in the last quarter. Aurora Investment Counsel acquired a new position in shares of DraftKings in the 4th quarter valued at $2,157,000. Finally, Capital World Investors grew its holdings in shares of DraftKings by 181.4% in the 4th quarter. Capital World Investors now owns 18,626,429 shares of the company’s stock valued at $641,867,000 after buying an additional 12,008,357 shares during the period. 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: UBS maintained a Buy rating while trimming its price target modestly from $49 to $48. Needham also reaffirmed its Buy rating with a $35 target, implying considerable potential upside from current levels. DraftKings analyst ratings
• Positive Sentiment: Several market commentaries argue that DraftKings’ roughly 35% decline in 2025 has created a valuation opportunity, with analysts still anticipating a possible recovery of approximately 50% or more. DraftKings stock plunges despite bullish analyst targets
• Neutral Sentiment: Coverage describing DraftKings entering a “new phase” highlights ongoing strategic development, while a separate TRWD licensing announcement concerns another company and does not appear to provide a direct catalyst for DKNG. What is driving DraftKings into a new phase
• Negative Sentiment: Prediction-market platform Kalshi is attracting substantial sports-event wagering volume following the start of the NFL season. Investors fear these event-contract platforms could compete with DraftKings for customer activity and betting dollars, despite CEO reassurances. DraftKings is losing to prediction markets
• Negative Sentiment: Commentary remains cautious after DraftKings underperformed the broader market. Jim Cramer advised a caller to consider moving on from the stock, reinforcing concerns about execution, valuation, and the lack of a clear near-term catalyst. Jim Cramer discusses moving on from DraftKings

About DraftKings

DraftKings Inc is a digital sports entertainment and gaming company that operates online sports betting, iGaming and daily fantasy sports platforms. Its products enable customers to place bets on professional and collegiate sports, play online casino games where permitted, and participate in fantasy contests across a range of sports.

The company also offers related services, including retail sportsbooks in select jurisdictions and sports media content through DraftKings Network. Its offerings are available in U.S.