What's Going On With DraftKings Stock Monday?

Zinger Key Points
  • Needham analyst Bernie McTernan maintains DraftKings with a Buy and raises the price target from $58 to $60.
  • BMO Capital analyst Brian Pitz maintains DraftKings with an Outperform and raises the price target from $51 to $54.

DraftKings Inc DKNG shares are trading higher Monday following positive analyst coverage from multiple analyst firms.

Here’s a look at the price target revisions from Monday:

  • Needham analyst Bernie McTernan maintained DraftKings with a Buy and raised the price target from $58 to $60.
  • BTIG analyst Clark Lampen maintained DraftKings with a Buy and raised the price target from $53 to $55.
  • BMO Capital analyst Brian Pitz maintained DraftKings with an Outperform and raised the price target from $51 to $54.

The price target increases come on the heels of DraftKings’ first-quarter financial results. Last week, DraftKings reported first-quarter revenue of $1.175 billion, which beat estimates of $1.124 billion, according to Benzinga Pro. The company reported adjusted earnings of 3 cents per share, which beat estimates for a loss of 28 cents per share.

DraftKings also raised the midpoint of its 2024 guidance from $4.775 billion to $4.9 billion versus estimates of $4.81 billion.

DraftKings noted that it plans to launch in Puerto Rico pending approvals. The company also highlighted nine jurisdictions that have introduced legislation or bills that could legalize mobile sports betting in upcoming elections.

Don’t Miss: DraftKings The ‘King Of The Beat & Raise’: 7 Analysts Size Up Q1 Earnings, Raised Guidance That Could Be Conservative

How To Buy DKNG Stock

By now you're likely curious about how to participate in the market for DraftKings – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. In the case of DraftKings, which is trading at $43.68 as of publishing time, $100 would buy you 2.29 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

DKNG Price Action: DraftKings shares were up 5.09% at $43.94 at the time of publication, according to Benzinga Pro.

Photo: courtesy of DraftKings.

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