DRW Securities LLC Makes New Investment in DraftKings Inc. $DKNG

Key Points

• DRW Securities LLC has acquired 6,967 shares of DraftKings Inc., valued at approximately $231,000, highlighting ongoing interest from institutional investors.
• Several analysts have adjusted their price targets for DraftKings, with Bank of America lowering its target from $60.00 to $50.00 while maintaining a "buy" rating.
• DraftKings recently reported a positive quarterly earnings result, achieving $1.51 billion in revenue, which exceeded analysts' expectations of $1.39 billion.

DRW Securities LLC acquired a new stake in DraftKings Inc. (NASDAQ:DKNG - Free Report) during the first quarter, according to its most recent filing with the Securities & Exchange Commission. The firm acquired 6,967 shares of the company's stock, valued at approximately $231,000.

A number of other hedge funds and other institutional investors also recently made changes to their positions in DKNG. Janus Henderson Group PLC raised its holdings in shares of DraftKings by 31,346.8% in the fourth quarter. Janus Henderson Group PLC now owns 9,381,853 shares of the company's stock valued at $349,005,000 after purchasing an additional 9,352,019 shares during the last quarter. Nuveen LLC bought a new stake in shares of DraftKings during the 1st quarter worth approximately $107,739,000. AGF Management Ltd. bought a new stake in shares of DraftKings during the 1st quarter worth approximately $83,622,000. Baillie Gifford & Co. raised its stake in shares of DraftKings by 26.5% during the 1st quarter. Baillie Gifford & Co. now owns 8,390,236 shares of the company's stock worth $278,640,000 after purchasing an additional 1,756,778 shares in the last quarter. Finally, Eminence Capital LP bought a new stake in shares of DraftKings during the 4th quarter worth approximately $65,255,000. 37.70% of the stock is currently owned by institutional investors and hedge funds.

DraftKings Stock Performance

DKNG stock traded down $0.84 during midday trading on Friday, reaching $46.56. 8,402,464 shares of the company were exchanged, compared to its average volume of 7,660,442. The company has a debt-to-equity ratio of 1.82, a current ratio of 1.34 and a quick ratio of 1.34. The business has a 50-day moving average price of $44.63 and a two-hundred day moving average price of $39.72. DraftKings Inc. has a one year low of $29.64 and a one year high of $53.61. The firm has a market capitalization of $41.41 billion, a price-to-earnings ratio of -71.63, a price-to-earnings-growth ratio of 1.12 and a beta of 1.73.

DraftKings (NASDAQ:DKNG - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. The company reported $0.30 EPS for the quarter, topping analysts' consensus estimates 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 firm had revenue of $1.51 billion during the quarter, compared to analysts' expectations of $1.39 billion. During the same period in the previous year, the business posted $0.12 earnings per share. The company's revenue for the quarter was up 36.9% compared to the same quarter last year. DraftKings has set its FY 2025 guidance at EPS. Equities research analysts forecast that DraftKings Inc. will post 0.64 EPS for the current year.

Wall Street Analyst Weigh In

DKNG has been the topic of a number of analyst reports. Macquarie dropped their price objective on DraftKings from $55.00 to $53.00 and set an "outperform" rating on the stock in a research note on Monday, May 12th. Jefferies Financial Group set a $54.00 price objective on DraftKings in a research note on Thursday, August 21st. Needham & Company LLC reiterated a "buy" rating and set a $65.00 price objective on shares of DraftKings in a research note on Friday, May 9th. Susquehanna reiterated a "positive" rating and set a $64.00 price objective on shares of DraftKings in a research note on Friday, August 8th. Finally, Stifel Nicolaus dropped their price objective on DraftKings from $53.00 to $51.00 and set a "buy" rating on the stock in a research note on Wednesday, July 16th. Twenty-four investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat, DraftKings presently has an average rating of "Moderate Buy" and an average target price of $54.37.

Insider Activity

In other DraftKings news, CFO Alan Wayne Ellingson sold 44,693 shares of the stock in a transaction on Tuesday, August 19th. The stock was sold at an average price of $44.90, for a total transaction of $2,006,715.70. Following the transaction, the chief financial officer owned 128,131 shares in the company, valued at $5,753,081.90. This trade represents a 25.86% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider R Stanton Dodge sold 158,331 shares of the stock in a transaction on Wednesday, June 18th. The stock was sold at an average price of $39.00, for a total value of $6,174,909.00. Following the transaction, the insider owned 504,381 shares in the company, valued at $19,670,859. The trade was a 23.89% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 816,662 shares of company stock valued at $35,460,274. 51.19% of the stock is owned by company insiders.

DraftKings Company Profile

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.