TLDR
- BTIG Research cut its price target on DraftKings (DKNG) from $37 to $35, while keeping a “buy” rating
- The stock is down roughly 35% year to date and trades around $22.89–$22.94
- DraftKings is expected to lay off a portion of its workforce as it shifts focus from growth to profitability
- Revenue grew 27% in 2025 to $6.05 billion, but growth is expected to slow to around 11% in 2026
- Insiders have sold over $3.6 million worth of stock in the past 90 days
DraftKings (DKNG) is having a rough 2026 so far. The stock is down about 35% year to date and is sitting near its 12-month low of $21.01.
On Thursday, BTIG Research trimmed its price target on DKNG from $37 to $35. The firm kept its “buy” rating, and that target still implies upside of over 52% from current prices.
BTIG wasn’t alone. Barclays also cut its target, from $44 to $37, while keeping an “overweight” rating. Deutsche Bank set a target of $26, and Berenberg Bank came in at $26.40.
On the more optimistic side, Citizens reiterated a market-outperform rating and set a price target of $38, implying upside of around 72% from where the stock was trading.
The consensus among 31 analysts is a “Moderate Buy,” with an average price target of $36.76. That’s a wide gap from the current price near $22.89.
The stock opened Thursday at $22.94. Its 50-day moving average sits at $30.21, and its 200-day moving average is at $34.95 — both well above where it’s trading now.
Workforce Cuts on the Way
DraftKings is expected to move forward with layoffs as part of a broader restructuring effort. Citizens analysts estimated the cuts would fall at the lower end of the 2% to 15% range common among tech companies.
The company currently employs more than 5,500 people across 13 countries — a workforce that grew by roughly 31% over the past several years.
With revenue growth slowing, trimming headcount is one lever the company can pull to protect margins and push toward stronger profitability.
Growth Slowing, But Still Growing
DraftKings posted revenue of roughly $6.05 billion in 2025, up 27% year over year. For 2026, the company is guiding for $6.5 billion to $6.9 billion in revenue — growth of about 11% at the midpoint.
The company turned profitable on a net income basis last year. Its non-GAAP EBITDA target for 2026 is between $6.5 billion and $6.9 billion, up from about $620 million in 2025.
The company’s PE ratio stands at -573.50, reflecting the long road it traveled before reaching profitability. Its P/E/G ratio is 0.92, and it carries a debt-to-equity ratio of 2.91.
On the insider activity front, things look a little less encouraging. Chief Accounting Officer Erik Bradbury sold 7,268 shares at $22.50 on February 19, reducing his position by 16.52%. Earlier, insider R. Stanton Dodge sold 52,777 shares at $32.01 on January 20. In total, insiders have sold over $3.6 million worth of stock in the last 90 days.
Institutional investors have been making smaller adjustments. IHT Wealth Management, Orion Portfolio Solutions, and Geneos Wealth Management all lifted their stakes modestly in recent quarters.
As of February 26, DKNG was trading at $22.89, near the lower end of its 52-week range of $21.01 to $48.78.
