Ardmore Road Asset Management LP Increases Stock Holdings in DraftKings Inc. $DKNG

Key Points

• Ardmore Road Asset Management LP significantly increased its stake in DraftKings Inc., reporting a 1,100% increase in ownership, totaling 600,000 shares valued at approximately $19.93 million.
• Insider transactions included Jocelyn Moore selling 4,861 shares and R Stanton Dodge selling 105,554 shares, representing notable decreases in their holdings.
• DraftKings reported a record revenue of $1.51 billion for the last quarter, exceeding analyst expectations and showing a 36.9% year-over-year increase in revenue.

Ardmore Road Asset Management LP lifted its position in shares of DraftKings Inc. (NASDAQ:DKNG - Free Report) by 1,100.0% in the first quarter, according to its most recent disclosure with the SEC. The institutional investor owned 600,000 shares of the company's stock after buying an additional 550,000 shares during the quarter. DraftKings comprises 2.0% of Ardmore Road Asset Management LP's holdings, making the stock its 19th biggest position. Ardmore Road Asset Management LP owned 0.07% of DraftKings worth $19,926,000 at the end of the most recent quarter.

Other hedge funds also recently modified their holdings of the company. Brown Advisory Inc. increased its position in shares of DraftKings by 14.6% in the first 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 DraftKings by 9.3% in the first quarter. IFM Investors Pty Ltd now owns 83,750 shares of the company's stock valued at $2,781,000 after buying an additional 7,147 shares during the period. Capital Investment Advisory Services LLC acquired a new position in DraftKings in the first quarter valued at approximately $515,000. Allspring Global Investments Holdings LLC raised its position in shares of DraftKings by 18.9% during 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 position in shares of DraftKings during the first quarter worth approximately $1,026,000. Institutional investors own 37.70% of the company's stock.

DraftKings Stock Performance

Shares of DraftKings stock traded down $0.07 during trading on Tuesday, hitting $47.91. 6,193,286 shares of the company's stock traded hands, compared to its average volume of 10,178,440. The company has a debt-to-equity ratio of 1.82, a current ratio of 1.34 and a quick ratio of 1.34. DraftKings Inc. has a 1 year low of $29.64 and a 1 year high of $53.61. The stock has a market capitalization of $42.61 billion, a P/E ratio of -73.71, a PEG ratio of 1.14 and a beta of 1.73. The business has a 50-day simple moving average of $44.25 and a 200-day simple moving average of $39.69.

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, beating 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 company had revenue of $1.51 billion for the quarter, compared to analysts' expectations of $1.39 billion. During the same period last year, the firm posted $0.12 earnings per share. DraftKings's revenue was up 36.9% compared to the same quarter last year. DraftKings has set its FY 2025 guidance at EPS. As a group, analysts forecast that DraftKings Inc. will post 0.64 EPS for the current year.

Insider Buying and Selling

In related news, insider Matthew Kalish sold 210,000 shares of DraftKings stock in a transaction that occurred on Tuesday, August 12th. The stock was sold at an average price of $42.90, for a total transaction of $9,009,000.00. Following the sale, the insider owned 4,190,233 shares of the company's stock, valued at approximately $179,760,995.70. This trade represents a 4.77% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Alan Wayne Ellingson sold 44,693 shares of DraftKings stock in a transaction that occurred 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 sale, the chief financial officer directly owned 128,131 shares in the company, valued at $5,753,081.90. This trade represents a 25.86% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 711,108 shares of company stock valued at $30,460,181 in the last 90 days. Insiders own 47.08% of the company's stock.

Analysts Set New Price Targets

A number of equities research analysts recently commented on DKNG shares. Macquarie lowered their price target on DraftKings from $55.00 to $53.00 and set an "outperform" rating for the company in a research report on Monday, May 12th. Guggenheim dropped their price target on DraftKings from $61.00 to $60.00 and set a "buy" rating for the company in a research report on Monday, May 12th. Needham & Company LLC restated a "buy" rating and issued a $65.00 target price on shares of DraftKings in a research report on Friday, May 9th. Susquehanna restated a "positive" rating and issued a $64.00 target price on shares of DraftKings in a research report on Friday, August 8th. Finally, Bank of America dropped their target price on DraftKings from $60.00 to $50.00 and set a "buy" rating for the company in a research report on Friday, May 9th. Twenty-five analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average 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.