CenterBook Partners LP Purchases Shares of 233,873 DraftKings Inc. (NASDAQ:DKNG)

Key Points

• CenterBook Partners LP has acquired 233,873 shares of DraftKings Inc. (NASDAQ:DKNG) worth approximately $7.77 million during the first quarter of the year.
• DraftKings reported a loss of $0.30 earnings per share for the quarter, missing estimates, despite revenue of $1.51 billion, surpassing expectations of $1.39 billion.
• Insiders sold a total of 536,627 shares in the last 90 days, including notable sales by Director Jocelyn Moore and insider R Stanton Dodge.

CenterBook Partners LP bought a new stake in DraftKings Inc. (NASDAQ:DKNG - Free Report) in the first quarter, according to its most recent Form 13F filing with the SEC. The institutional investor bought 233,873 shares of the company's stock, valued at approximately $7,767,000.

A number of other large investors have also recently made changes to their positions in the company. Janus Henderson Group PLC lifted its holdings in shares of DraftKings by 31,346.8% in the 4th quarter. Janus Henderson Group PLC now owns 9,381,853 shares of the company's stock valued at $349,005,000 after buying an additional 9,352,019 shares during the period. FMR LLC increased its stake in DraftKings by 110.6% in the 4th quarter. FMR LLC now owns 13,617,448 shares of the company's stock valued at $506,569,000 after purchasing an additional 7,150,382 shares in the last quarter. Baillie Gifford & Co. increased its stake in DraftKings by 26.5% in the 1st quarter. Baillie Gifford & Co. now owns 8,390,236 shares of the company's stock valued at $278,640,000 after purchasing an additional 1,756,778 shares in the last quarter. Eminence Capital LP purchased a new position in DraftKings in the 4th quarter valued at approximately $65,255,000. Finally, Fernbridge Capital Management LP purchased a new position in DraftKings in the 4th quarter valued at approximately $49,220,000. 37.70% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling at DraftKings

In other news, CFO Alan Wayne Ellingson sold 6,829 shares of the stock in a transaction on Friday, May 16th. The shares were sold at an average price of $36.77, for a total value of $251,102.33. Following the transaction, the chief financial officer owned 171,268 shares of the company's stock, valued at $6,297,524.36. This represents a 3.83% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider R Stanton Dodge sold 105,554 shares of the company's stock in a transaction on Tuesday, August 5th. The shares were sold at an average price of $44.60, for a total transaction of $4,707,708.40. Following the completion of the sale, the insider directly owned 500,000 shares of the company's stock, valued at $22,300,000. This trade represents a 17.43% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 642,181 shares of company stock worth $25,550,925. 47.08% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

DKNG has been the subject of several research analyst reports. Sanford C. Bernstein initiated coverage on DraftKings in a research note on Wednesday, June 4th. They issued an "outperform" rating and a $46.00 price objective for the company. TD Securities lowered their target price on DraftKings from $60.00 to $55.00 and set a "buy" rating on the stock in a report on Thursday, April 24th. Mizuho lowered their target price on DraftKings from $59.00 to $58.00 and set an "outperform" rating on the stock in a report on Monday, May 12th. BTIG Research lowered their target price on DraftKings from $64.00 to $52.00 and set a "buy" rating on the stock in a report on Tuesday, April 22nd. Finally, Citigroup reiterated a "buy" rating on shares of DraftKings in a report on Friday, July 11th. Two equities research analysts have rated the stock with a hold rating and twenty-six have assigned a buy rating to the stock. According to MarketBeat.com, DraftKings presently has a consensus rating of "Moderate Buy" and an average target price of $54.50.

DraftKings Stock Down 0.4%

DKNG traded down $0.19 during midday trading on Monday, hitting $42.69. The company had a trading volume of 3,447,137 shares, compared to its average volume of 10,420,320. DraftKings Inc. has a 52 week low of $29.29 and a 52 week high of $53.61. The company has a quick ratio of 1.34, a current ratio of 1.34 and a debt-to-equity ratio of 1.82. The company has a market capitalization of $37.96 billion, a price-to-earnings ratio of -65.74, a PEG ratio of 1.25 and a beta of 1.70. The stock's 50 day moving average price is $41.49 and its 200 day moving average price is $39.40.

DraftKings (NASDAQ:DKNG - Get Free Report) last released its quarterly earnings results on Wednesday, August 6th. The company reported $0.30 earnings per share for the quarter, topping the consensus estimate of $0.16 by $0.14. DraftKings had a negative net margin of 5.63% and a negative return on equity of 30.06%. The business had revenue of $1.51 billion for the quarter, compared to analysts' expectations of $1.39 billion. During the same period in the previous year, the company earned $0.12 earnings per share. The firm's revenue for the quarter was up 36.9% compared to the same quarter last year. On average, research analysts anticipate that DraftKings Inc. will post 0.64 earnings per share for the current fiscal year.

About DraftKings

DraftKings Inc operates as a digital sports entertainment and gaming company in the United States and internationally. It provides online sports betting and casino, daily fantasy sports, media, and other consumer products, as well as retails sportsbooks. The company also engages in the design and development of sports betting and casino gaming software for online and retail sportsbooks, and iGaming operators.