Key Takeaways
- Benchmark maintained its Buy recommendation on DKNG with a $29 price objective; shares currently at $25.15
- Shares have plummeted 45% during the last six months, touching a 52-week bottom of $21.01
- Week 9 New York online sports wagering revenue jumped 68% annually despite handle falling 10%
- Board member Harry Sloan acquired 100,000 shares worth approximately $2.19M last month; insider ownership totals 51.19%
- Wall Street consensus shows 25 Buy ratings among 31 analysts, with mean price objective at $37.19
The recent performance of DKNG stock has been challenging. Shares have tumbled 45% during the past half-year, closing Friday at $25.15 — significantly below the 52-week peak of $48.78.
Even with this substantial decline, Benchmark analyst Mike Hickey maintained his Buy recommendation alongside a $29 price objective. InvestingPro has included DKNG among its Most Undervalued selections.
Wall Street’s analyst community largely shares this optimistic perspective. Among 31 professionals tracking the stock, 25 assign Buy ratings, four recommend Hold, and two suggest Sell. The consensus price objective stands at $37.19.
The disparity between today’s trading price and the average analyst target represents a significant potential gain.
Recent sports betting statistics from New York provided encouraging signs. During Week 9, total handle declined 10% on an annual basis, yet revenue climbed 68%, powered by a hold percentage of 9.0% — up 420 basis points compared to 4.8% in the same period last year.
DraftKings experienced a 27.7% year-over-year decrease in handle during that timeframe. However, revenue skyrocketed 442.1% annually as the hold rate expanded to 8.8%, versus merely 1.2% twelve months earlier. Last year’s figure represented an abnormally low comparison point.
Rival PENN posted a 5.1% handle decline and 110.1% revenue increase, with hold rising to 10.2%. The data suggests operators enjoyed strong performance industry-wide.
Activity Among Insiders and Institutions
Regarding insider transactions, Director Harry Sloan purchased 100,000 DKNG shares on February 17 at an average price of $21.85 per share, totaling approximately $2.19 million. This transaction increased his holdings to 350,219 shares.
Chief Accounting Officer Erik Bradbury took the opposite action, divesting 2,883 shares on March 3 at $24.56, trimming his stake by 7.02%. Collectively, insiders control 51.19% of the organization.
Dynamic Technology Lab Private Ltd established a fresh position during Q3, acquiring 57,031 shares valued at approximately $2.13 million. Multiple smaller investment firms also expanded or initiated stakes during this timeframe.
ESPN Partnership and Platform Development
DraftKings unveiled an account-linking partnership with ESPN scheduled around March Madness. Customers can utilize a “Bet Your Bracket” functionality that integrates with ESPN Tournament Challenge to deliver customized wagering recommendations.
The organization continues advancing its Super App initiative, consolidating Sportsbook, Casino, Predictions, and Lottery into a single platform. Analysts from Bernstein, Wells Fargo, and Needham have identified the predictions offering and integrated application as catalysts for expansion.
Wells Fargo reaffirmed an Overweight stance with a $30 objective. Bernstein elevated its target to $30, maintaining an Outperform rating. Needham holds a Buy recommendation with a $35 target.
Truist reduced its objective from $45 to $33 while preserving a Buy rating. Mizuho lowered its target from $46 to $44 while sustaining an Outperform designation.
DKNG’s 50-day moving average is positioned at $28.82 while its 200-day stands at $34.00. The company’s market capitalization totals $12.38 billion. Shares carry a beta of 1.67 and the company maintains a debt-to-equity ratio of 2.91.
