DKNG Stock Analysis: Buy, Sell, or Hold?

DKNG - DraftKings Inc. Class A Common Stock

SERVICES-MISCELLANEOUS AMUSEMENT & RECREATION
$26.17
1.14 (4.55%) ▲
5d: +0.11%
30d: +14.73%
90d: +3.03%
WAIT
LOW Confidence
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Analysis Updated: Aug 21, 2026 12:00 AM ET
Earnings: Aug 06, 2026 0d
Smart Money Accumulation

Options open interest is building while the stock consolidates - a pattern consistent with institutional accumulation. View Scanner →

Signal fired Aug 20, 2026 at $24.66 · last confirmed Aug 20, 2026

Strength: 8.0/10

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Interactive Price Chart (1 Month)

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Bottom Line:
📊 MIXED SIGNALS: DKNG shows conflicting indicators. Wait for confirmation before entering.
See Forward Earnings Fair Value & Price Prediction →

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

0% (Stagnation) 50% (Hyper Growth)
EST. PRICE IN 2031
$48.67
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$30.22
13.4% Margin of Safety

How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 15.4x Exit PE.

In-depth Analysis How we analyze

Valuation Analysis: DKNG is currently trading at $26.17, which is considered extended relative to its 30-day fair value range of $23.23 to $25.54. The stock's valuation (Forward PE: 16.1) is in line with its historical norms (15.4). At these levels, the market is pricing in 1.5% annual earnings growth. This growth rate appears achievable given the company's track record, suggesting the valuation is rational.

Technical Outlook: Technically, DKNG is in a strong uptrend. The price is approaching resistance at $26.63. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation. The stock is showing strong short-term momentum, up 4.6% recently.

Market Sentiment: DKNG scores 23/100 on our bottoming-setup gauge. Note this measures entry quality, not trend direction — a low score can mean the chart is extended after a strong run (don't chase) or still falling without stabilization; better entries typically come after a pullback toward the 20-day average. Wall Street analysts see significant upside, with an average price target of $34.84 (+33.1%). Current signals suggest waiting for a better entry point before initiating new positions.

Quick Decision Summary

Current Position EXTENDED
Historical Trading Range $23.23 - $25.54
Company Quality Score 44/100 (HOLD)
Volume Confirmation HIGH
Confidence Score 34.3%

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All Signals

  • BEARISH: Price extended above range
  • BEARISH: Weak technical setup (23/100)
  • BULLISH: High volume confirmation
  • BULLISH: Strong upward momentum (+4.6%)
  • BULLISH: Trading 33.1% below Wall St target ($34.84)
  • NEUTRAL: Market pricing in 1.5% annual earnings growth - fairly valued
  • WARNING: Composite score 44/100 in the bottom quintile — this cohort historically lags the market

Trading Range Analysis

30-Day Trading Range $23.23 - $25.54
Current vs Trading Range EXTENDED

Support & Resistance Levels

Support Level $23.55
Resistance Level $26.63
Current Trend Strong Uptrend
Technical data as of Aug 21, 2026

Fundamental Context

Forward P/E (Next Year Est.) 16.13
Wall Street Target $34.84 (+33.1%)
Revenue Growth (YoY) -4.6%
Earnings Growth (YoY) 184.6%
Profit Margin -2.7%
Valuation Premium vs History +1.5% premium
PE vs Historical 16.1 vs 15.4 FAIR
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): +1.5% (market-implied from PE analysis)
1-Year Target $26.56 (+2%)
2-Year Target $26.96 (+3%)
3-Year Target $27.37 (+5%)
3-Yr Target (if PE normalizes) (PE: 16→15) PE COMPRESSION $26.13 (0%)
Earnings growth offset by PE compression
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 20.1, Growth: 82.6%) $109.92 (+320%)
Base: (SPY PE: 16.1, Growth: 82.6%) $88.32 (+238%)
Bear: (PE: 13.7, Growth: 82.6%) $75.08 (+187%)
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Last updated: August 21, 2026 8:00 PM ET
Data refreshes hourly during market hours. Next update: 9:00 PM
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Ticker Score Recommendation Change %
Insider Activity (6 Months)
0
Buys
3
Sells
Net
INSIDERS SELLING
Recent Transactions
Jocelyn Moore SELL 2150 shares 2026-03-13
Paul Liberman SELL 484417 shares 2026-03-11
Erik Bradbury SELL 2883 shares 2026-03-03

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Advanced DKNG Option Strategies

Professional options setups generated by AI based on today's DKNG price and gamma walls.

Iron Condor Bull Call Bear Put Collar

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