Bank of New York Mellon Corp Purchases New Stake in DraftKings Inc. $DKNG

Key Points

• Bank of New York Mellon purchased 950,668 DraftKings shares worth approximately $24 million, joining other institutional investors that increased their positions; institutions now own 37.7% of the company.
• Analysts remain broadly optimistic, with DraftKings carrying a “Moderate Buy” consensus rating and an average price target of $34.11, compared with the stock’s recent price of $25.26.
• DraftKings beat quarterly EPS expectations but missed revenue estimates, while revenue declined 4.6% year over year. Investors are also weighing regulatory clarity and growth from its Predictions product against added debt, governance concerns and recent insider selling.

Bank of New York Mellon Corp purchased a new stake in shares of DraftKings Inc. (NASDAQ:DKNG - Free Report) in the second quarter, according to the company in its most recent 13F filing with the SEC. The fund purchased 950,668 shares of the company's stock, valued at approximately $24,014,000. Bank of New York Mellon Corp owned approximately 0.19% of DraftKings at the end of the most recent quarter.

Several other institutional investors have also recently bought and sold shares of DKNG. Integrated Wealth Concepts LLC increased its holdings in DraftKings by 5.9% during the 1st quarter. Integrated Wealth Concepts LLC now owns 9,460 shares of the company's stock worth $314,000 after purchasing an additional 524 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in DraftKings by 1,141.0% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 44,044 shares of the company's stock valued at $1,463,000 after acquiring an additional 40,495 shares in the last quarter. Empowered Funds LLC lifted its stake in DraftKings by 18.0% during the 1st quarter. Empowered Funds LLC now owns 9,115 shares of the company's stock valued at $303,000 after acquiring an additional 1,391 shares in the last quarter. Sivia Capital Partners LLC bought a new position in DraftKings during the 2nd quarter valued at $603,000. Finally, Daiwa Securities Group Inc. boosted its holdings in DraftKings by 2.2% during the 2nd quarter. Daiwa Securities Group Inc. now owns 44,102 shares of the company's stock worth $1,892,000 after acquiring an additional 968 shares during the last quarter. Institutional investors and hedge funds own 37.70% of the company's stock.

Wall Street Analysts Forecast Growth

DKNG has been the subject of several recent analyst reports. Needham & Company LLC reiterated a "buy" rating and issued a $35.00 target price on shares of DraftKings in a research note on Monday, May 11th. TD Cowen raised their price target on shares of DraftKings from $30.00 to $35.00 and gave the company a "buy" rating in a research report on Friday, July 10th. Wells Fargo & Company cut their price target on shares of DraftKings from $32.00 to $29.00 and set an "overweight" rating on the stock in a report on Monday, July 20th. Zacks Research raised shares of DraftKings from a "strong sell" rating to a "hold" rating in a research report on Wednesday, May 20th. Finally, Freedom Capital upgraded shares of DraftKings to a "strong-buy" rating in a research note on Wednesday, May 20th. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $34.11.

DraftKings Stock Performance

NASDAQ DKNG opened at $25.26 on Monday. DraftKings Inc. has a 52-week low of $20.46 and a 52-week high of $48.78. The company has a 50-day simple moving average of $24.87 and a 200 day simple moving average of $24.52. The company has a debt-to-equity ratio of 3.22, a quick ratio of 1.02 and a current ratio of 1.02. The company has a market capitalization of $12.54 billion, a PE ratio of -66.47 and a beta of 1.66.

DraftKings (NASDAQ:DKNG - Get Free Report) last released its earnings results on Friday, August 7th. The company reported $0.09 earnings per share for the quarter, beating analysts' consensus estimates of $0.02 by $0.07. DraftKings had a negative net margin of 2.68% and a negative return on equity of 11.26%. The firm had revenue of $1.44 billion for the quarter, compared to analysts' expectations of $1.51 billion. During the same period in the previous year, the company earned $0.30 earnings per share. The company's quarterly revenue was down 4.6% on a year-over-year basis. On average, research analysts predict that DraftKings Inc. will post 0.51 EPS for the current year.

More DraftKings News

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: A Ninth Circuit appeals court ruled that sports bets are not swaps, reducing the risk that DraftKings’ wagers could face additional derivatives regulation. The decision also supports industry-wide regulatory clarity and helped drive a broader rally in DraftKings and Flutter Entertainment. DKNG and FLUT Rally on Sports-Bets Ruling
• Positive Sentiment: An analyst comparison argued that DraftKings has stronger growth prospects than Flutter, citing sportsbook gains, improved customer economics and expansion of its Predictions product. DraftKings vs. Flutter Growth Prospects
• Positive Sentiment: DraftKings’ Predictions platform is receiving additional promotional exposure through a bonus offer tied to a Commanders-Ravens prediction market, potentially supporting customer engagement and product adoption. DraftKings Predictions Promotion
• Positive Sentiment: Investors purchased approximately 82,021 DKNG call options, about 106% above average call volume. While options activity does not guarantee further gains, it signals increased speculative interest in the shares.
• Neutral Sentiment: DraftKings introduced a system allowing loyalty points to be spent more like cash, which could simplify rewards for customers and encourage additional activity. DraftKings Loyalty Points Update
• Negative Sentiment: Investors continue to weigh governance concerns surrounding approval of a $30 million marketing contract for a cofounder’s startup shortly before his departure, raising questions about conflicts of interest and board oversight. DraftKings Cofounder Deal
• Negative Sentiment: Recent refinancing improved DraftKings’ liquidity through a $700 million term loan and a $750 million revolving facility, but the added debt keeps valuation, leverage and future interest costs in focus. DraftKings Refinancing and Valuation

Insider Buying and Selling at DraftKings

In other news, insider R Stanton Dodge sold 62,500 shares of the company's stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $29.68, for a total transaction of $1,855,000.00. Following the transaction, the insider owned 556,258 shares of the company's stock, valued at $16,509,737.44. This represents a 10.10% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Jocelyn Moore sold 10,759 shares of the stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $24.05, for a total value of $258,753.95. Following the transaction, the director owned 1,881 shares of the company's stock, valued at $45,238.05. The trade was a 85.12% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 47.18% of the company's stock.

DraftKings Company Profile

DraftKings Inc is a leading digital sports entertainment and gaming company specializing in daily fantasy sports, sports betting and iGaming products. The company provides an integrated platform where users can participate in daily fantasy contests, place wagers on professional sports events, and enjoy a range of online casino-style games. DraftKings' proprietary technology supports real-time odds, live scoring and advanced analytics to enhance the user experience across mobile and desktop applications.

Founded in 2012 by co-founders Jason Robins, Matthew Kalish and Paul Liberman, DraftKings began as a daily fantasy sports provider and rapidly expanded into regulated sports betting following legislative changes in the United States.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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