Key Points
- DraftKings CFO Alan Ellingson bought 18,908 shares for about $350,000, increasing his direct ownership by 9.66% to 214,692 shares.
- Quarterly revenue increased 16.2% year over year to $1.33 billion but fell short of analysts’ expectations; the company also reported a larger-than-expected per-share loss.
- Analyst views were mixed, with several firms maintaining Buy-type ratings while lowering price targets. DraftKings had a “Moderate Buy” consensus rating and an average target of $27.81.
DraftKings Inc. (NASDAQ:DKNG - Get Free Report) CFO Alan Ellingson purchased 18,908 shares of the stock in a transaction that occurred on Monday, November 9th. The stock was acquired 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 directly owned 214,692 shares of the company's stock, valued at $3,973,948.92. This represents a 9.66% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink.
DraftKings Stock Performance
Shares of DraftKings stock opened at $18.70 on Tuesday. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 3.22. DraftKings Inc. has a 52 week low of $16.55 and a 52 week high of $36.98. The firm's 50 day moving average is $21.37 and its two-hundred day moving average is $23.99. The firm has a market capitalization of $9.28 billion, a P/E ratio of -23.37, a P/E/G ratio of 3.03 and a beta of 1.65.
DraftKings (NASDAQ:DKNG - Get Free Report) last issued its quarterly earnings data on Thursday, November 5th. The company reported ($0.53) earnings per share for the quarter, missing the consensus estimate of ($0.41) by ($0.12). The company had revenue of $1.33 billion for the quarter, compared to analysts' expectations of $1.39 billion. DraftKings had a negative return on equity of 11.26% and a negative net margin of 2.68%. The firm's quarterly revenue was up 16.2% compared to the same quarter last year. During the same quarter in the prior year, the firm posted ($0.26) EPS. Research analysts forecast that DraftKings Inc. will post 0.31 EPS for the current fiscal year.
Institutional Inflows and Outflows
Several hedge funds and other institutional investors have recently bought and sold shares of DKNG. CoreCap Advisors LLC increased its stake in DraftKings by 336.5% in the second quarter. CoreCap Advisors LLC now owns 1,148 shares of the company's stock valued at $29,000 after purchasing an additional 885 shares during the period. Basecamp Wealth Advisors LLC raised its holdings in shares of DraftKings by 3,547.1% in the first quarter. Basecamp Wealth Advisors LLC now owns 1,240 shares of the company's stock valued at $27,000 after buying an additional 1,206 shares during the last quarter. Ascentis Independent Advisors purchased a new stake in shares of DraftKings in the first quarter valued at about $27,000. Heritage Family Offices LLP purchased a new stake in shares of DraftKings in the third quarter valued at about $44,000. Finally, Mirae Asset Global Investments Co. Ltd. acquired a new stake in shares of DraftKings during the third quarter worth about $48,000. 37.70% of the stock is owned by hedge funds and other institutional investors.
Analyst Upgrades and Downgrades
DKNG has been the subject of several research analyst reports. Susquehanna restated a "positive" rating and issued a $23.00 price objective on shares of DraftKings in a research note on Monday. Bank of America reiterated a "buy" rating on shares of DraftKings in a research report on Friday. Wolfe Research initiated coverage on DraftKings in a research report on Wednesday, September 2nd. They set an "outperform" rating and a $40.00 target price on the stock. Morgan Stanley reduced their target price on DraftKings from $36.00 to $31.00 and set an "overweight" rating for the company in a report on Monday, October 19th. Finally, Citigroup decreased their target price on DraftKings from $32.00 to $28.00 and set a "buy" rating for the company in a research report on Monday, October 12th. One investment analyst has rated the stock with a Strong Buy rating, twenty-five have given a Buy rating, nine have issued a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, DraftKings presently has a consensus rating of "Moderate Buy" and an average price target of $27.81.
Read Our Latest Analysis on DraftKings
Key Stories Impacting 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 stake by 9.66%. The purchase may signal confidence from an executive, though it does not offset the company’s operating challenges. SEC filing
- Neutral Sentiment: Some analysts retained Buy or similar ratings despite cutting their targets, suggesting they still see potential upside if DraftKings executes. Separately, reports point to rising hopes for legal sports betting in Texas, although prediction-market activity is drawing scrutiny. Texas betting hopes and prediction markets
- Negative Sentiment: Third-quarter revenue rose 16% year over year but missed expectations, and adjusted earnings were also worse than forecast. Higher spending on its new prediction-markets business is weighing on profitability; DraftKings cut its 2026 outlook, while commentary on the 2027 outlook has been mixed. Q3 earnings call highlights
- Negative Sentiment: Analysts including JPMorgan, UBS and Stifel downgraded the stock, and multiple firms cut price targets following the results and guidance. JPMorgan moved its rating to Neutral and lowered its target to $21, reflecting greater concern about the outlook. Analyst downgrades and prediction-market losses
- Negative Sentiment: A shareholder-investigation firm announced it is examining potential securities claims involving DraftKings, adding a legal overhang; the notice does not establish that a claim has merit. Shareholder investigation notice
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.
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