Candlestick Capital Management LP Makes New $10.85 Million Investment in DraftKings Inc. $DKNG

Key Points

• Candlestick Capital Management LP purchased a new stake of 290,161 shares of DraftKings in Q3, valued at about $10.85 million, representing roughly 0.06% of the company.
• Director Harry Sloan bought 100,000 shares for $2.185 million (raising his holdings to 350,219 shares), while insiders have sold 547,345 shares worth $14.11 million in the past 90 days and collectively own about 51.19% of the stock.
• Analysts hold a consensus rating of "Moderate Buy" on DKNG with an average price target of approximately $37.19 (25 Buy, 4 Hold, 2 Sell).

Candlestick Capital Management LP purchased a new stake in DraftKings Inc. (NASDAQ:DKNG - Free Report) during the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor purchased 290,161 shares of the company's stock, valued at approximately $10,852,000. Candlestick Capital Management LP owned approximately 0.06% of DraftKings as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors and hedge funds also recently modified their holdings of DKNG. Ameriflex Group Inc. boosted its stake in shares of DraftKings by 100.0% during the 3rd quarter. Ameriflex Group Inc. now owns 810 shares of the company's stock worth $30,000 after acquiring an additional 405 shares in the last quarter. Root Financial Partners LLC acquired a new stake in shares of DraftKings during the third quarter worth $33,000. AlphaQuest LLC acquired a new stake in shares of DraftKings during the third quarter worth $41,000. TD Private Client Wealth LLC lifted its holdings in shares of DraftKings by 45.6% during the third quarter. TD Private Client Wealth LLC now owns 1,165 shares of the company's stock valued at $44,000 after purchasing an additional 365 shares during the last quarter. Finally, Delos Wealth Advisors LLC purchased a new stake in shares of DraftKings during the second quarter valued at $47,000. Institutional investors and hedge funds own 37.70% of the company's stock.

Analyst Ratings Changes

A number of brokerages recently weighed in on DKNG. Weiss Ratings reissued a "sell (d-)" rating on shares of DraftKings in a research note on Wednesday, January 21st. Rothschild & Co Redburn set a $35.00 price objective on shares of DraftKings in a research note on Friday, January 30th. Morgan Stanley decreased their target price on shares of DraftKings from $53.00 to $40.00 and set an "overweight" rating for the company in a report on Tuesday, February 24th. Truist Financial dropped their target price on shares of DraftKings from $45.00 to $33.00 and set a "buy" rating on the stock in a research report on Tuesday, February 17th. Finally, Citigroup restated a "market outperform" rating on shares of DraftKings in a report on Tuesday, February 24th. Twenty-five equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $37.19.

Insider Activity at DraftKings

In other DraftKings news, CAO Erik Bradbury sold 2,883 shares of the stock in a transaction that occurred on Tuesday, March 3rd. The shares were sold at an average price of $24.56, for a total value of $70,806.48. Following the completion of the sale, the chief accounting officer owned 38,168 shares in the company, valued at $937,406.08. This represents a 7.02% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Harry Sloan purchased 100,000 shares of the stock in a transaction dated Tuesday, February 17th. The shares were bought at an average price of $21.85 per share, for a total transaction of $2,185,000.00. Following the completion of the acquisition, the director owned 350,219 shares in the company, valued at $7,652,285.15. This represents a 39.96% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders sold 547,345 shares of company stock valued at $14,111,660 over the last ninety days. 51.19% of the stock is owned by company insiders.

DraftKings Stock Up 1.2%

Shares of DraftKings stock opened at $25.87 on Friday. DraftKings Inc. has a 1 year low of $21.01 and a 1 year high of $48.78. The company has a market cap of $12.75 billion, a P/E ratio of -646.75, a P/E/G ratio of 1.06 and a beta of 1.67. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 2.91. The stock has a 50-day moving average price of $27.88 and a 200 day moving average price of $33.25.

About DraftKings

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.

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