AGF Management Ltd. Invests $83.62 Million in DraftKings Inc. (NASDAQ:DKNG)

Key Points

• AGF Management Ltd. has made a significant investment in DraftKings Inc., acquiring 2,517,982 shares valued at approximately $83.62 million, increasing their ownership to about 0.29% of the company.
• Several institutional investors have also increased their holdings in DraftKings, with 37.70% of the stock now owned by institutional investors.
• DraftKings reported a revenue of $1.51 billion for the last quarter, exceeding analysts' expectations by $120 million, and plans to post earnings per share of 0.64 for the current fiscal year.

AGF Management Ltd. bought a new stake in DraftKings Inc. (NASDAQ:DKNG - Free Report) during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor bought 2,517,982 shares of the company's stock, valued at approximately $83,622,000. AGF Management Ltd. owned approximately 0.29% of DraftKings as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. Brown Advisory Inc. lifted its stake 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 purchasing an additional 968 shares during the period. IFM Investors Pty Ltd lifted its stake in shares of DraftKings by 9.3% during the 1st quarter. IFM Investors Pty Ltd now owns 83,750 shares of the company's stock worth $2,781,000 after purchasing an additional 7,147 shares during the period. Capital Investment Advisory Services LLC purchased a new position in shares of DraftKings during the 1st quarter worth $515,000. Allspring Global Investments Holdings LLC lifted its stake in shares of DraftKings by 18.9% during the 1st 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 purchased a new position in shares of DraftKings during the 1st quarter worth $1,026,000. Hedge funds and other institutional investors own 37.70% of the company's stock.

Insiders Place Their Bets

In related news, insider Matthew Kalish sold 210,000 shares of the stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $42.90, for a total value of $9,009,000.00. Following the completion of the sale, the insider directly 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider R Stanton Dodge sold 158,331 shares of the company's stock in a transaction dated Wednesday, June 18th. The shares were sold at an average price of $39.00, for a total value of $6,174,909.00. Following the completion of the transaction, the insider owned 504,381 shares in the company, valued at $19,670,859. This represents a 23.89% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 642,181 shares of company stock worth $26,615,625. 51.19% of the stock is owned by corporate insiders.

DraftKings Trading Up 0.1%

DKNG stock traded up $0.06 during mid-day trading on Wednesday, reaching $43.16. 8,357,477 shares of the stock traded hands, compared to its average volume of 9,652,705. DraftKings Inc. has a 52-week low of $29.64 and a 52-week high of $53.61. The stock's fifty day moving average is $42.01 and its 200-day moving average is $39.46. The company has a market cap of $38.38 billion, a P/E ratio of -66.40, a P/E/G ratio of 1.26 and a beta of 1.70. The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 1.82.

DraftKings (NASDAQ:DKNG - Get Free Report) last posted 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 analyst estimates of $1.39 billion. During the same quarter last year, the business posted $0.12 EPS. The company's revenue was up 36.9% on a year-over-year basis. As a group, sell-side analysts expect that DraftKings Inc. will post 0.64 earnings per share for the current year.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the company. Morgan Stanley reissued an "overweight" rating and set a $52.00 price target (up previously from $51.00) on shares of DraftKings in a research note on Friday, July 11th. TD Securities reduced their price target on DraftKings from $60.00 to $55.00 and set a "buy" rating on the stock in a research note on Thursday, April 24th. Macquarie reduced their price target on DraftKings from $55.00 to $53.00 and set an "outperform" rating on the stock in a research note on Monday, May 12th. Truist Financial upped their price objective on DraftKings from $50.00 to $55.00 and gave the stock a "buy" rating in a report on Wednesday, July 16th. Finally, Cowen reissued a "buy" rating on shares of DraftKings in a research report on Thursday, April 24th. Two analysts have rated the stock with a hold rating and twenty-six have given a buy rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $54.50.

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.