Piper Sandler slashes price target on DraftKings Inc. [DKNG] – find out why.

DraftKings Inc. [NASDAQ: DKNG] slipped around -0.2 points on Friday, while shares priced at $15.14 at the close of the session, down -1.30%. The company report on November 18, 2022 that DraftKings Announces Sponsorship of Military Research Associate Program Developed by Kindbridge Research Institute.


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DraftKings Inc. (Nasdaq:DKNG) today announced it will provide multi-year funding to Kindbridge Research Institute (“KRI”) and serve as the sole corporate sponsor of KRI’s Military Research Associate Program (“MRAP”), which assists veterans transitioning from military service to pursuing advanced training in public mental health research. DraftKings’ sponsorship furthers its commitment to a systems-based, public health-informed approach to responsible gaming – including the support of evidence-based research.

“It is a privilege to be able to play a leading role in supporting the next generation of researchers while training veterans for new careers in concert with KRI,” said Chrissy Thurmond, DraftKings’ Senior Director, Responsible Gaming. “DraftKings has a deep tradition of supporting the military community as part of its Tech for Heroes initiative and S.E.R.V.E.S. corporate social responsibility program, which has previously provided support for KRI’s ongoing research designed to provide a solution to the lack of information about problem gaming among veterans. We will continue to seek out ways to give back to service members, veterans and their families.”.

DraftKings Inc. stock is now -44.89% down from its year-to-date (YTD) trading value. DKNG Stock saw the intraday high of $15.22 and lowest of $14.91 per share. The company’s 52-week high price is 36.57, which means current price is +54.96% above from all time high which was touched on 01/03/22.

Compared to the average trading volume of 21.10M shares, DKNG reached a trading volume of 5359290 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about DraftKings Inc. [DKNG]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for DKNG shares is $20.80 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on DKNG stock is a recommendation set at 2.30. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Piper Sandler have made an estimate for DraftKings Inc. shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on November 18, 2022. While these analysts kept the previous recommendation, Redburn raised their target price to Neutral. The new note on the price target was released on October 12, 2022, representing the official price target for DraftKings Inc. stock. On August 17, 2022, analysts increased their price target for DKNG shares from 18 to 25.

The Average True Range (ATR) for DraftKings Inc. is set at 1.07, with the Price to Sales ratio for DKNG stock in the period of the last 12 months amounting to 3.50. The Price to Book ratio for the last quarter was 4.73, with the Price to Cash per share for the same quarter was set at 4.57.

How has DKNG stock performed recently?

DraftKings Inc. [DKNG] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 1.61. With this latest performance, DKNG shares gained by 3.70% in over the last four-week period, additionally plugging by 6.32% over the last 6 months – not to mention a drop of -57.45% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for DKNG stock in for the last two-week period is set at 53.41, with the RSI for the last a single of trading hit 55.73, and the three-weeks RSI is set at 51.85 for DraftKings Inc. [DKNG]. The present Moving Average for the last 50 days of trading for this stock 14.78, while it was recorded at 14.90 for the last single week of trading, and 15.74 for the last 200 days.

DraftKings Inc. [DKNG]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and DraftKings Inc. [DKNG] shares currently have an operating margin of -114.62 and a Gross Margin at +38.72. DraftKings Inc.’s Net Margin is presently recorded at -117.53.

Return on Equity for this stock declined to -70.68, with Return on Assets sitting at -40.57.

DraftKings Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.70 and a Current Ratio set at 1.70.

Earnings analysis for DraftKings Inc. [DKNG]

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for DKNG. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for DraftKings Inc. go to -6.80%.

Insider trade positions for DraftKings Inc. [DKNG]

There are presently around $3,956 million, or 58.20% of DKNG stock, in the hands of institutional investors. The top three institutional holders of DKNG stocks are: VANGUARD GROUP INC with ownership of 34,631,603, which is approximately 6.525% of the company’s market cap and around 2.10% of the total institutional ownership; ARK INVESTMENT MANAGEMENT LLC, holding 24,707,394 shares of the stock with an approximate value of $374.07 million in DKNG stocks shares; and BLACKROCK INC., currently with $218.93 million in DKNG stock with ownership of nearly -1.808% of the company’s market capitalization.

214 institutional holders increased their position in DraftKings Inc. [NASDAQ:DKNG] by around 44,253,091 shares. Additionally, 240 investors decreased positions by around 32,627,481 shares, while 139 investors held positions by with 184,419,527 shares. The mentioned changes placed institutional holdings at 261,300,099 shares, according to the latest SEC report filing. DKNG stock had 83 new institutional investments in for a total of 22,006,989 shares, while 70 institutional investors sold positions of 7,086,638 shares during the same period.

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