Bayforest Capital Ltd Purchases New Stake in DraftKings Inc. (NASDAQ:DKNG)

Key Points

• Bayforest Capital Ltd has acquired a new stake in DraftKings Inc., purchasing 25,722 shares valued at approximately $854,000 in the first quarter.
• There has been a significant increase in institutional investment in DraftKings, with multiple firms making new stakes, leading to institutional ownership now totaling 37.70% of the company's stock.
• Analysts are generally optimistic about DraftKings, with the stock receiving a consensus rating of "Moderate Buy" and an average target price of $54.38.

Bayforest Capital Ltd purchased a new stake in shares of DraftKings Inc. (NASDAQ:DKNG - Free Report) in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm purchased 25,722 shares of the company's stock, valued at approximately $854,000.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of the business. Beacon Pointe Advisors LLC increased its holdings in DraftKings by 1.9% during the 4th quarter. Beacon Pointe Advisors LLC now owns 10,699 shares of the company's stock valued at $398,000 after purchasing an additional 203 shares in the last quarter. Nissay Asset Management Corp Japan ADV increased its stake in shares of DraftKings by 0.3% in the 4th quarter. Nissay Asset Management Corp Japan ADV now owns 77,696 shares of the company's stock valued at $2,946,000 after buying an additional 217 shares during the period. Snowden Capital Advisors LLC increased its stake in shares of DraftKings by 3.5% in the 4th quarter. Snowden Capital Advisors LLC now owns 8,724 shares of the company's stock valued at $325,000 after buying an additional 296 shares during the period. Obermeyer Wealth Partners increased its stake in shares of DraftKings by 3.4% in the 1st quarter. Obermeyer Wealth Partners now owns 8,930 shares of the company's stock valued at $297,000 after buying an additional 297 shares during the period. Finally, MassMutual Private Wealth & Trust FSB increased its stake in shares of DraftKings by 44.8% in the 1st quarter. MassMutual Private Wealth & Trust FSB now owns 1,024 shares of the company's stock valued at $34,000 after buying an additional 317 shares during the period. 37.70% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling

In related news, insider R Stanton Dodge sold 105,554 shares of the stock in a transaction on Friday, July 18th. The stock was sold at an average price of $43.53, for a total value of $4,594,765.62. Following the sale, the insider owned 500,000 shares in the company, valued at approximately $21,765,000. This represents a 17.43% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Jocelyn Moore sold 3,136 shares of the stock in a transaction on Friday, May 30th. The shares were sold at an average price of $35.28, for a total value of $110,638.08. Following the completion of the sale, the director owned 5,947 shares in the company, valued at approximately $209,810.16. This trade represents a 34.53% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 589,404 shares of company stock worth $22,639,746. 51.19% of the stock is owned by corporate insiders.

DraftKings Stock Down 3.0%

Shares of NASDAQ DKNG traded down $1.36 during trading hours on Friday, hitting $43.68. The company had a trading volume of 1,077,314 shares, compared to its average volume of 10,293,771. The stock has a market capitalization of $38.85 billion, a P/E ratio of -52.75, a price-to-earnings-growth ratio of 1.54 and a beta of 1.67. The company has a quick ratio of 1.20, a current ratio of 1.20 and a debt-to-equity ratio of 2.11. DraftKings Inc. has a 1-year low of $28.69 and a 1-year high of $53.61. The firm's 50 day moving average is $40.38 and its 200-day moving average is $39.23.

Wall Street Analyst Weigh In

Several research firms have recently commented on DKNG. Bank of America lowered their target price on DraftKings from $60.00 to $50.00 and set a "buy" rating for the company in a research note on Friday, May 9th. Susquehanna lifted their target price on DraftKings from $52.00 to $60.00 and gave the company a "positive" rating in a research note on Friday, July 25th. Needham & Company LLC reaffirmed a "buy" rating and set a $65.00 price objective on shares of DraftKings in a research note on Friday, May 9th. Guggenheim decreased their price objective on DraftKings from $61.00 to $60.00 and set a "buy" rating for the company in a research note on Monday, May 12th. Finally, Cowen reaffirmed a "buy" rating on shares of DraftKings in a research note on Thursday, April 24th. One analyst has rated the stock with a hold rating and twenty-seven have assigned a buy rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $54.38.

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.