Citizens Jmp Issues Pessimistic Forecast for DraftKings (NASDAQ:DKNG) Stock Price

by · The Cerbat Gem

DraftKings (NASDAQ:DKNG – Get Free Report) had its target price reduced by stock analysts at Citizens Jmp from $37.00 to $35.00 in a research note issued on Thursday, Benzinga reports. The brokerage presently has a “market outperform” rating on the stock. Citizens Jmp’s target price indicates a potential upside of 64.71% from the stock’s previous close.

Several other equities analysts have also recently issued reports on DKNG. Benchmark boosted their price target on shares of DraftKings from $29.00 to $30.00 and gave the company a “buy” rating in a research report on Friday, August 7th. Jefferies Financial Group reissued a “buy” rating on shares of DraftKings in a research report on Wednesday, June 10th. Barclays lowered their price objective on DraftKings from $35.00 to $34.00 and set an “overweight” rating on the stock in a research report on Monday, August 10th. Deutsche Bank Aktiengesellschaft upped their target price on shares of DraftKings from $26.00 to $28.00 and gave the company a “hold” rating in a research note on Thursday, July 9th. Finally, UBS Group cut their price objective on DraftKings from $49.00 to $48.00 and set a “buy” rating for the company in a report on Friday, September 18th. One 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 given a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $34.29.

Check Out Our Latest Analysis on DKNG

DraftKings Trading Down 2.5%

NASDAQ:DKNG opened at $21.25 on Thursday. The firm has a market capitalization of $10.55 billion, a P/E ratio of -55.92, a P/E/G ratio of 1.78 and a beta of 1.63. The company has a fifty day moving average of $24.08 and a 200 day moving average of $24.50. 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 has a 52 week low of $20.46 and a 52 week high of $43.66.

DraftKings (NASDAQ:DKNG – Get Free Report) last posted its earnings results on Friday, August 7th. The company reported $0.09 earnings per share for the quarter, topping analysts’ consensus estimates of $0.02 by $0.07. The company had revenue of $1.44 billion during the quarter, compared to analyst estimates of $1.51 billion. DraftKings had a negative net margin of 2.68% and a negative return on equity of 11.26%. DraftKings’s revenue for the quarter was down 4.6% on a year-over-year basis. During the same period in the prior year, the business posted $0.30 earnings per share. On average, research analysts predict that DraftKings will post 0.49 earnings per share for the current year.

Insider Buying and Selling

In other DraftKings news, Director Jocelyn Moore sold 10,759 shares of the company’s stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $24.05, for a total value 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 SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 47.18% of the company’s stock.

Institutional Trading of DraftKings

Institutional investors and hedge funds have recently bought and sold shares of the stock. Janus Henderson Group PLC grew its position in shares of DraftKings by 50.8% during the fourth quarter. Janus Henderson Group PLC now owns 25,313,909 shares of the company’s stock valued at $858,893,000 after purchasing an additional 8,524,923 shares in the last quarter. Capital World Investors boosted its position in shares of DraftKings by 181.4% during the 4th quarter. Capital World Investors now owns 18,626,429 shares of the company’s stock valued at $641,867,000 after acquiring an additional 12,008,357 shares during the last quarter. Geode Capital Management LLC increased its position in DraftKings by 2.1% in the fourth quarter. Geode Capital Management LLC now owns 9,494,860 shares of the company’s stock worth $326,394,000 after purchasing an additional 192,160 shares during the last quarter. Eminence Capital LP lifted its position in DraftKings by 34.3% during the fourth quarter. Eminence Capital LP now owns 8,426,755 shares of the company’s stock valued at $290,386,000 after purchasing an additional 2,151,892 shares during the last quarter. Finally, Norges Bank bought a new stake in shares of DraftKings in the 4th quarter worth about $284,466,000. 37.70% of the stock is currently owned by institutional investors.

Key Stories Impacting DraftKings

Here are the key news stories impacting DraftKings this week:

  • Positive Sentiment: Prediction markets are showing rapid growth. Trading volume reportedly increased from $2.3 billion to $11 billion in three months, while customer growth reached 10.4% year over year. Supporters believe the business can attract new users, generate higher-margin revenue and strengthen DraftKings’ “Super App” strategy. DraftKings: Prediction Pessimism Overly Done – H2’26 Outperformance May Deliver Breakout
  • Positive Sentiment: Vertical integration could improve profitability. DraftKings is seeking to capture more of the economics of its prediction business and is pursuing a potential 30% adjusted EBITDA margin, which could make the new segment more valuable if execution is successful. Can DKNG’s Vertical Integration Unlock a 30% Adjusted EBITDA Margin?
  • Positive Sentiment: Valuation is attracting bullish investors. One analysis described DraftKings’ roughly 1.75-times enterprise-value-to-sales valuation as discounted relative to its growth prospects, arguing that stronger second-half performance could support a breakout. DraftKings Stock Price Up 6.3% – Time to Buy?
  • Neutral Sentiment: Management’s outlook remains a key uncertainty. The CEO questioned why the stock reacts positively or negatively to prediction-market news, while analysts viewed the recent decline as rational because the strategy requires substantial investment before benefits are realized. DraftKings CEO Doesn’t Know Why His Stock Loves Bad Prediction Market News
  • Negative Sentiment: Higher spending is pressuring margins. Plans to invest aggressively in prediction markets raised concerns that customer-acquisition costs and near-term EBITDA losses could offset the segment’s long-term promise. DraftKings Drops as Prediction-Market Spending Plans Stir Margin Doubts
  • Negative Sentiment: Balance-sheet and reputational risks remain. Share repurchases have contributed to balance-sheet deterioration, while commentary questioning whether DraftKings benefits from frequent losing gamblers could create responsible-gaming and regulatory concerns. Is DraftKings Betting Big on Losing Gamblers?

DraftKings Company Profile

(Get Free Report)

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.

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