600,000 Shares in DraftKings Inc. $DKNG Acquired by Paralel Advisors LLC

Key Points

• Paralel Advisors LLC acquired 600,000 shares of DraftKings Inc., valued at approximately $25.7 million, making it the 20th largest position in their investment portfolio.
• Insider sales included CFO Alan Wayne Ellingson and Matthew Kalish, who collectively sold over 605,000 shares in recent months, indicating a notable decrease in their holdings.
• DraftKings stock has a consensus rating of "Moderate Buy" among analysts, with twenty-seven rating it as a buy, and a target price consensus of $52.83.

Paralel Advisors LLC bought a new position in DraftKings Inc. (NASDAQ:DKNG - Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 600,000 shares of the company's stock, valued at approximately $25,734,000. DraftKings makes up approximately 1.0% of Paralel Advisors LLC's investment portfolio, making the stock its 20th biggest position. Paralel Advisors LLC owned about 0.07% of DraftKings at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Brown Advisory Inc. grew its position in shares of DraftKings by 14.6% during the 1st quarter. Brown Advisory Inc. now owns 7,600 shares of the company's stock worth $252,000 after buying an additional 968 shares during the period. IFM Investors Pty Ltd boosted its stake in DraftKings by 9.3% during the first quarter. IFM Investors Pty Ltd now owns 83,750 shares of the company's stock worth $2,781,000 after acquiring an additional 7,147 shares in the last quarter. Capital Investment Advisory Services LLC bought a new position in DraftKings during the first quarter worth $515,000. Allspring Global Investments Holdings LLC grew its holdings in DraftKings by 18.9% in the first quarter. Allspring Global Investments Holdings LLC now owns 2,728,482 shares of the company's stock worth $90,558,000 after purchasing an additional 434,525 shares during the period. Finally, Kentucky Retirement Systems acquired a new stake in DraftKings in the first quarter worth $1,026,000. 37.70% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In other news, CFO Alan Wayne Ellingson sold 44,693 shares of the company's stock in a transaction on Tuesday, August 19th. The shares were sold at an average price of $44.90, for a total value of $2,006,715.70. Following the completion of the sale, the chief financial officer owned 128,131 shares in the company, valued at $5,753,081.90. This represents a 25.86% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider Matthew Kalish sold 210,000 shares of the stock in a transaction dated Tuesday, August 12th. The shares were sold at an average price of $42.90, for a total transaction of $9,009,000.00. Following the completion of the sale, the insider owned 4,190,233 shares of the company's stock, valued at approximately $179,760,995.70. This represents a 4.77% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 605,554 shares of company stock worth $26,515,100 in the last three months. 51.19% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on DKNG shares. Benchmark reiterated a "buy" rating on shares of DraftKings in a report on Wednesday. Morgan Stanley reaffirmed an "overweight" rating and issued a $52.00 target price (up from $51.00) on shares of DraftKings in a research report on Friday, July 11th. Berenberg Bank set a $43.00 price target on DraftKings and gave the stock a "buy" rating in a report on Thursday, October 9th. Citigroup reissued a "neutral" rating on shares of DraftKings in a research note on Wednesday, October 1st. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of DraftKings in a report on Wednesday, October 8th. Twenty-seven investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $52.83.

DraftKings Price Performance

DKNG stock opened at $34.70 on Thursday. The company has a debt-to-equity ratio of 1.82, a quick ratio of 1.34 and a current ratio of 1.34. The business has a 50-day simple moving average of $41.64 and a two-hundred day simple moving average of $39.61. The company has a market capitalization of $17.23 billion, a P/E ratio of -53.38, a price-to-earnings-growth ratio of 0.84 and a beta of 1.99. DraftKings Inc. has a 52-week low of $29.64 and a 52-week high of $53.61.

DraftKings (NASDAQ:DKNG - Get Free Report) last issued its quarterly earnings data on Thursday, August 7th. The company reported $0.30 EPS for the quarter, topping the consensus estimate of $0.16 by $0.14. DraftKings had a negative return on equity of 30.06% and a negative net margin of 5.63%.The firm had revenue of $1.51 billion during the quarter, compared to the consensus estimate of $1.39 billion. During the same period in the prior year, the business posted $0.12 earnings per share. The company's quarterly revenue was up 36.9% compared to the same quarter last year. DraftKings has set its FY 2025 guidance at EPS. Research analysts expect that DraftKings Inc. will post 0.64 EPS 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.

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