DraftKings (DKNG) stock has taken a beating over the last year and has had a horrible start to 2026 so far. However, investors recently received some good news after a U.S. Securities and Exchange Commission (SEC) filing revealed that one of the company’s directors had purchased stock worth $2.19 million. The director in question, Harry Evans Sloan, bought 100,000 shares of DKNG stock at an average price of $21.85 per share on Feb. 17. His stake in the company is now 350,219 shares after the recent transaction.
This transaction is significant in the context of the current share price. DraftKings is trading near its 52-week lows, but that’s not all. DKNG stock has lost 50% of its value in the last six months and is down 31% so far this year. If ever investors needed some reassurance regarding the company’s prospects, Sloan just provided it. Having said that, management will need to do more to reassure investors about DraftKing's dismal 2026 outlook and slowing growth.
About DraftKings Stock
DraftKings is a sports entertainment company that offers products like daily fantasy sports, online betting, online casino, media, and other consumer products. The company is based in Boston, Massachusetts, and was founded in 2012.
Volatility has been a common theme for DKNG stock shareholders throughout the last year, with shares registering a 52-week high of $48.78 and a 52-week low of $21.01. DKNG stock is currently down 46% in the last 12 months and down 31% year-to-date (YTD). This is in stark contrast to the VanEck Video Gaming and eSports ETF's (ESPO) 2.5% gain over the last year and 11% drop YTD.
The consensus projected EPS growth rate for DKNG looks impressive — 179% in 2027, 79% in 2028, and 46% in 2029 is by no means ordinary. The company has, however, repeatedly missed on earnings estimates. The reason analysts are still bullish on DKNG stock is the broader industry's growth. Online sports betting, currently a $49.7 billion industry, is expected to grow at a 13.2% compound annual growth rate (CAGR) until 2031. The broader online gambling and sports betting market is expected to more than double in the same period. Considering the fact that DraftKings is still early in monetization, the multibagger potential is there.
Currently, DKNG stock trades at a price-to-book value of 18.61 times. On a price-to-sales (P/S) basis, however, the multiple of 1.94 times offers a discount. The stock has been going down due to a weaker than expected 2026 guidance, but once the company can recoup the missing growth, there’s no reason why it can’t go back to the same multiples it has historically commanded.
DraftKings' 2026 Guidance Disappoints
On Feb. 12, DraftKings announced its fourth-quarter earnings, causing a drop of 13% immediately afterwards. The reason for the post-market dump was weak guidance well below Wall Street's expectations. The company expects to bring in $6.5 billion to $6.9 billion in revenue in 2026, while the consensus estimate was for $7.3 billion. This overshadowed Q4 EPS of $0.25 and quarterly revenue of $1.98 billion, up 43% year-over-year (YOY).
The earnings call did contain some positive comments, with CEO Jason Robins pointing out that the latest DraftKings Sportsbook state, Missouri, saw the highest first two months of adoption of any state in the company’s history. DraftKings is also focused on the new Predictions category, intending to unlock hundreds of millions in annual revenue in the coming years.
What Are Analysts Saying About DraftKings Stock?
Analysts are optimistic about DKNG stock’s prospects, with 25 out of 34 Wall Street analysts calling it a “Strong Buy.” The disappointing forecast dampened the mood and prompted multiple analysts to lower their price targets. BTIG lowered its target to $35 while Berenberg lowered its price target from $40.50 to $26.40. Morgan Stanley also brought its target down to $40 from $53.
This negative sentiment could continue in the coming days as other analysts revise their models. That said, the mean target price of $35.38 still offers more than 48% potential upside from current levels.
On the date of publication, Jabran Kundi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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