American Century Companies Inc. Purchases 52,061 Shares of DraftKings Inc. $DKNG

Key Points

• American Century Companies Inc. increased its stake in DraftKings by 123.0%, now owning 94,383 shares valued at approximately $3.1 million as per its latest SEC filing.
• DraftKings reported earnings of $0.30 per share, exceeding estimates, with quarterly revenue of $1.51 billion, marking a 36.9% increase year-over-year.
• Analysts have set a new average price target of $54.50 for DraftKings, with a consensus rating of "Moderate Buy" based on 25 buy ratings and 2 hold ratings.

American Century Companies Inc. boosted its holdings in shares of DraftKings Inc. (NASDAQ:DKNG - Free Report) by 123.0% in the 1st quarter, according to its most recent Form 13F filing with the SEC. The firm owned 94,383 shares of the company's stock after buying an additional 52,061 shares during the period. American Century Companies Inc.'s holdings in DraftKings were worth $3,134,000 as of its most recent SEC filing.

Other large investors have also recently modified their holdings of the company. Raiffeisen Bank International AG bought a new position in shares of DraftKings in the 4th quarter worth approximately $25,000. FNY Investment Advisers LLC purchased a new stake in DraftKings in the 1st quarter worth $26,000. Smallwood Wealth Investment Management LLC purchased a new position in shares of DraftKings during the first quarter valued at about $27,000. Point72 Asia Singapore Pte. Ltd. bought a new position in shares of DraftKings in the 4th quarter valued at about $28,000. Finally, GPS Wealth Strategies Group LLC lifted its stake in DraftKings by 197.9% in the first quarter. GPS Wealth Strategies Group LLC now owns 849 shares of the company's stock worth $28,000 after purchasing an additional 564 shares during the last quarter. Hedge funds and other institutional investors own 37.70% of the company's stock.

Insider Activity

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

DraftKings Stock Performance

NASDAQ:DKNG traded down $0.81 during trading hours on Friday, reaching $46.59. 2,052,150 shares of the company's stock were exchanged, compared to its average volume of 10,107,525. The company has a quick ratio of 1.34, a current ratio of 1.34 and a debt-to-equity ratio of 1.82. DraftKings Inc. has a 1-year low of $29.64 and a 1-year high of $53.61. The company has a 50-day moving average of $44.55 and a 200 day moving average of $39.76. The firm has a market capitalization of $41.44 billion, a price-to-earnings ratio of -71.26, a P/E/G ratio of 1.13 and a beta of 1.73.

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

Analyst Ratings Changes

Several equities analysts recently issued reports on DKNG shares. JMP Securities cut their price objective on shares of DraftKings from $54.00 to $50.00 and set a "market outperform" rating on the stock in a report on Thursday, June 5th. Truist Financial lifted their price objective on shares of DraftKings from $50.00 to $55.00 and gave the company a "buy" rating in a report on Wednesday, July 16th. Barclays reissued an "overweight" rating and set a $54.00 price objective (up from $51.00) on shares of DraftKings in a report on Friday, August 8th. Susquehanna reissued a "positive" rating and set a $64.00 price objective on shares of DraftKings in a report on Friday, August 8th. Finally, Sanford C. Bernstein initiated coverage on shares of DraftKings in a report on Wednesday, June 4th. They set an "outperform" rating and a $46.00 price objective on the stock. Twenty-four equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $54.37.

DraftKings 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.