Baillie Gifford & Co. Raises Stake in DraftKings Inc. (NASDAQ:DKNG)

Key Points

• Baillie Gifford & Co. increased its stake in DraftKings by 26.5%, owning approximately 8.39 million shares valued at $278.64 million after an additional purchase during the first quarter.
• DraftKings' stock is currently trading at $44.04, with a recent 1.7% decline, while the company has a market capitalization of $39.16 billion.
• Analysts largely favor DraftKings, with one researcher rating it as a hold and twenty-seven analysts issuing buy ratings, indicating a consensus rating of "Moderate Buy" and an average price target of $54.10.

Baillie Gifford & Co. grew its stake in shares of DraftKings Inc. (NASDAQ:DKNG - Free Report) by 26.5% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 8,390,236 shares of the company's stock after purchasing an additional 1,756,778 shares during the quarter. Baillie Gifford & Co. owned approximately 0.95% of DraftKings worth $278,640,000 at the end of the most recent quarter.

Other large investors have also recently made changes to their positions in the company. 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 acquiring an additional 9,352,019 shares in the last quarter. Norges Bank bought a new position in DraftKings in the fourth quarter worth about $276,328,000. FMR LLC raised its holdings in DraftKings by 110.6% in the fourth quarter. FMR LLC now owns 13,617,448 shares of the company's stock worth $506,569,000 after purchasing an additional 7,150,382 shares in the last quarter. Eminence Capital LP bought a new position in DraftKings in the fourth quarter worth about $65,255,000. Finally, Fernbridge Capital Management LP bought a new position in DraftKings in the fourth quarter worth about $49,220,000. 37.70% of the stock is owned by hedge funds and other institutional investors.

DraftKings Stock Down 1.7%

Shares of DKNG opened at $44.04 on Friday. DraftKings Inc. has a 52-week low of $28.69 and a 52-week high of $53.61. The company has a market capitalization of $39.16 billion, a PE ratio of -53.06, a price-to-earnings-growth ratio of 1.51 and a beta of 1.67. The stock has a fifty day simple moving average of $39.52 and a two-hundred day simple moving average of $39.02. The company has a quick ratio of 1.20, a current ratio of 1.20 and a debt-to-equity ratio of 2.11.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the stock. BMO Capital Markets restated an "outperform" rating and set a $65.00 price objective on shares of DraftKings in a report on Thursday, April 24th. Barclays set a $51.00 price objective on shares of DraftKings and gave the company an "overweight" rating in a report on Friday, July 18th. Cfra Research upgraded shares of DraftKings to a "moderate buy" rating in a report on Monday, April 14th. Needham & Company LLC reiterated a "buy" rating and issued a $65.00 target price on shares of DraftKings in a research report on Friday, May 9th. Finally, Susquehanna upped their target price on DraftKings from $42.00 to $52.00 and gave the company a "positive" rating in a research report on Monday, May 12th. One research analyst has rated the stock with a hold rating and twenty-seven have given a buy rating to the company. According to MarketBeat.com, DraftKings presently has a consensus rating of "Moderate Buy" and an average price target of $54.10.

Insider Buying and Selling

In other DraftKings news, insider R Stanton Dodge sold 105,554 shares of the company's stock in a transaction dated Friday, July 18th. The shares were sold at an average price of $43.53, for a total value of $4,594,765.62. Following the transaction, the insider owned 500,000 shares of the company's stock, valued at $21,765,000. This represents a 17.43% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CFO Alan Wayne Ellingson sold 6,829 shares of the company's stock in a transaction dated Friday, May 16th. The shares were sold at an average price of $36.77, for a total transaction of $251,102.33. Following the completion of the transaction, the chief financial officer directly owned 171,268 shares in the company, valued at $6,297,524.36. The trade was a 3.83% decrease in their position. The disclosure for this sale can be found here. Insiders sold 589,404 shares of company stock valued at $22,639,746 over the last 90 days. Insiders own 51.19% of the company's stock.

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.

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