ARK Investment Management LLC Sells 359,652 Shares of DraftKings Inc. $DKNG

Key Points

• ARK Investment Management LLC reduced its stake in DraftKings Inc. by 7.4%, selling 359,652 shares, leaving it with 4,470,481 shares, which constitutes 1.4% of its overall portfolio.
• Several institutional investors, including T. Rowe Price and AQR Capital Management, have increased their holdings in DraftKings, indicating interest despite ARK's recent sell-off.
• DraftKings has received multiple ratings from analysts, maintaining a consensus of "Moderate Buy" with an average target price of $52.83, despite recent downgrades from some firms.

ARK Investment Management LLC lowered its position in shares of DraftKings Inc. (NASDAQ:DKNG - Free Report) by 7.4% in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 4,470,481 shares of the company's stock after selling 359,652 shares during the period. DraftKings makes up approximately 1.4% of ARK Investment Management LLC's portfolio, making the stock its 20th largest position. ARK Investment Management LLC owned approximately 0.50% of DraftKings worth $191,739,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently made changes to their positions in the company. T. Rowe Price Investment Management Inc. grew its position in DraftKings by 0.7% in the 1st quarter. T. Rowe Price Investment Management Inc. now owns 18,700,071 shares of the company's stock worth $621,030,000 after purchasing an additional 130,434 shares during the period. Baillie Gifford & Co. grew its position in DraftKings by 26.5% in 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 during the period. Massachusetts Financial Services Co. MA grew its position in DraftKings by 4.4% in the 1st quarter. Massachusetts Financial Services Co. MA now owns 7,098,641 shares of the company's stock worth $235,746,000 after purchasing an additional 301,134 shares during the period. Eminence Capital LP grew its position in DraftKings by 195.2% in the 1st quarter. Eminence Capital LP now owns 5,178,083 shares of the company's stock worth $171,964,000 after purchasing an additional 3,423,909 shares during the period. Finally, AQR Capital Management LLC grew its position in DraftKings by 2,138.9% in the 1st quarter. AQR Capital Management LLC now owns 4,696,244 shares of the company's stock worth $155,962,000 after purchasing an additional 4,486,488 shares during the period. Institutional investors own 37.70% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on the stock. Citigroup reaffirmed a "neutral" rating on shares of DraftKings in a research report on Wednesday, October 1st. Deutsche Bank Aktiengesellschaft set a $47.00 price objective on DraftKings and gave the stock a "hold" rating in a research note on Friday, August 8th. Northland Securities set a $30.00 target price on DraftKings in a research report on Monday, October 13th. Northland Capmk downgraded DraftKings from a "strong-buy" rating to a "strong sell" rating in a research report on Wednesday, October 1st. Finally, BTIG Research lowered their target price on DraftKings from $53.00 to $45.00 and set a "buy" rating on the stock in a research report on Thursday, October 2nd. Twenty-seven research analysts have rated the stock with a Buy rating, one has issued a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, DraftKings currently has a consensus rating of "Moderate Buy" and an average target price of $52.83.

Insider Buying and Selling

In other DraftKings news, insider R Stanton Dodge sold 105,554 shares of the business's stock in a transaction on Tuesday, August 5th. The shares were sold at an average price of $44.60, for a total value of $4,707,708.40. Following the sale, the insider owned 500,000 shares in the company, valued at $22,300,000. The trade was a 17.43% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Jocelyn Moore sold 4,861 shares of the business's stock in a transaction on Wednesday, August 13th. The stock was sold at an average price of $43.21, for a total transaction of $210,043.81. Following the completion of the sale, the director owned 1,461 shares in the company, valued at approximately $63,129.81. The trade was a 76.89% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 552,777 shares of company stock worth $24,690,599 in the last three months. Corporate insiders own 47.08% of the company's stock.

DraftKings Trading Up 0.1%

Shares of DraftKings stock opened at $33.62 on Wednesday. The company has a market capitalization of $16.69 billion, a P/E ratio of -51.72, a P/E/G ratio of 0.84 and a beta of 1.99. 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 company has a fifty day moving average of $41.81 and a 200 day moving average of $39.64. DraftKings Inc. has a fifty-two week low of $29.64 and a fifty-two week high of $53.61.

DraftKings (NASDAQ:DKNG - Get Free Report) last issued its earnings results on Thursday, August 7th. The company reported $0.30 earnings per share for the quarter, topping the consensus estimate of $0.16 by $0.14. The company 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%. DraftKings's quarterly revenue was up 36.9% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.12 EPS. DraftKings has set its FY 2025 guidance at EPS. On average, sell-side analysts anticipate that DraftKings Inc. will post 0.64 earnings per share for the current fiscal year.

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.

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