DraftKings (NASDAQ:DKNG) Announces Quarterly Earnings Results, Misses Estimates By $0.25 EPS

by · The Markets Daily

DraftKings (NASDAQ:DKNG – Get Free Report) posted its quarterly earnings results on Thursday. The company reported $0.20 earnings per share for the quarter, missing analysts’ consensus estimates of $0.45 by ($0.25), Zacks reports. DraftKings had a negative return on equity of 22.84% and a negative net margin of 4.90%.

DraftKings Price Performance

NASDAQ DKNG traded down $1.14 during trading hours on Thursday, reaching $25.16. 28,053,167 shares of the company’s stock were exchanged, compared to its average volume of 14,878,300. The stock has a market cap of $12.52 billion, a PE ratio of -44.14, a price-to-earnings-growth ratio of 0.47 and a beta of 1.67. DraftKings has a one year low of $25.01 and a one year high of $53.61. The firm has a fifty day moving average of $32.66 and a 200-day moving average of $36.49. The company has a current ratio of 1.10, a quick ratio of 1.09 and a debt-to-equity ratio of 2.51.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on DKNG. Guggenheim reduced their price objective on shares of DraftKings from $45.00 to $42.00 and set a “buy” rating for the company in a report on Thursday, January 29th. UBS Group reissued a “buy” rating on shares of DraftKings in a research report on Wednesday, January 7th. Rothschild & Co Redburn set a $35.00 price target on shares of DraftKings in a research note on Friday, January 30th. Mizuho decreased their price objective on DraftKings from $54.00 to $46.00 and set an “outperform” rating on the stock in a report on Thursday, November 13th. Finally, Truist Financial lowered DraftKings from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, February 3rd. Twenty-three research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $45.79.

Get Our Latest Stock Report on DKNG

Insider Buying and Selling at DraftKings

In other DraftKings news, CFO Alan Wayne Ellingson sold 8,421 shares of the business’s stock in a transaction on Friday, November 14th. The stock was sold at an average price of $29.23, for a total value of $246,145.83. Following the transaction, the chief financial officer owned 126,990 shares of the company’s stock, valued at approximately $3,711,917.70. The trade was a 6.22% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider R Stanton Dodge sold 52,777 shares of the stock in a transaction on Tuesday, January 20th. The stock was sold at an average price of $32.01, for a total value of $1,689,391.77. Following the sale, the insider owned 500,000 shares in the company, valued at $16,005,000. The trade was a 9.55% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 113,975 shares of company stock valued at $3,721,511. Corporate insiders own 51.19% of the company’s stock.

Hedge Funds Weigh In On DraftKings

Institutional investors have recently modified their holdings of the stock. Elevated Private Wealth LLC acquired a new position in shares of DraftKings during the fourth quarter worth approximately $827,000. Triumph Capital Management raised its position in DraftKings by 11,595.5% in the 4th quarter. Triumph Capital Management now owns 2,573 shares of the company’s stock worth $89,000 after purchasing an additional 2,551 shares during the last quarter. EntryPoint Capital LLC acquired a new position in DraftKings during the 4th quarter worth $382,000. Marex Group plc lifted its holdings in DraftKings by 254.4% during the 4th quarter. Marex Group plc now owns 181,511 shares of the company’s stock worth $6,255,000 after buying an additional 130,296 shares in the last quarter. Finally, Steward Partners Investment Advisory LLC boosted its position in DraftKings by 114.9% in the 4th quarter. Steward Partners Investment Advisory LLC now owns 29,803 shares of the company’s stock valued at $1,027,000 after buying an additional 15,933 shares during the last quarter. 37.70% of the stock is owned by institutional investors.

Key DraftKings News

Here are the key news stories impacting DraftKings this week:

  • Positive Sentiment: Q4 results showed 43% revenue growth, record revenue and adjusted EBITDA, and positive net income — evidence of operational momentum that could support longer‑term fundamentals. DraftKings Reports Fourth Quarter Revenue Growth of 43%
  • Neutral Sentiment: Market previews and “what to watch” pieces set expectations heading into earnings; these summaries highlight KPIs and guidance as the next drivers of price movement rather than the raw results. DraftKings Set To Report Q4 Earnings: What To Watch
  • Neutral Sentiment: Analyses asking whether earnings can spark a reversal are highlighting that a single report could change sentiment, but they leave the verdict contingent on forward guidance and margin trends. DraftKings (DKNG) Stock: Can Thursday Earnings Spark a Reversal?
  • Negative Sentiment: Analyst action trimmed upside: Bernstein recently cut its price target (from $41 to $32) while keeping an Outperform — the lower target can sap demand and gives traders a near‑term excuse to sell. What is the Street Saying About DraftKings Inc. (DKNG)?
  • Negative Sentiment: Technicals and valuation are unfavorable: shares are trading near multi‑year lows, below the 50‑day and 200‑day moving averages, with a negative trailing P/E and relatively high debt-to-equity — factors that amplify downside risk if guidance disappoints.
  • Negative Sentiment: Pre‑earnings positioning and elevated volume increased downside sensitivity — headline beats weren’t enough to offset selling pressure from shorter‑term traders and cautious analysts. DraftKings Stock Near 2-Year Lows Ahead of Earnings
  • Neutral Sentiment: Reported short‑interest data in recent feeds appears inconsistent/erroneous (shows zero shares) — the true short positioning is unclear, which adds an element of uncertainty to the stock’s near‑term moves.

About DraftKings

(Get Free Report)

DraftKings Inc is a leading digital sports entertainment and gaming company specializing in daily fantasy sports, sports betting and iGaming products. The company provides an integrated platform where users can participate in daily fantasy contests, place wagers on professional sports events, and enjoy a range of online casino-style games. DraftKings’ proprietary technology supports real-time odds, live scoring and advanced analytics to enhance the user experience across mobile and desktop applications.

Founded in 2012 by co-founders Jason Robins, Matthew Kalish and Paul Liberman, DraftKings began as a daily fantasy sports provider and rapidly expanded into regulated sports betting following legislative changes in the United States.

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