Capital Impact Advisors LLC Buys New Stake in DraftKings Inc. $DKNG

Key Points

• Capital Impact Advisors LLC has acquired a new stake in DraftKings, purchasing 207,809 shares valued at approximately $6.9 million, representing 2.6% of its portfolio.
• Insider selling activity was notable, with CFO Alan Wayne Ellingson selling 44,693 shares for over $2 million, and another insider, Matthew Kalish, selling 210,000 shares amounting to $9 million.
• DraftKings reported a strong quarterly performance with $1.51 billion in revenue, surpassing analysts' expectations and recording a 36.9% year-over-year increase.

Capital Impact Advisors LLC bought a new stake in shares of DraftKings Inc. (NASDAQ:DKNG - Free Report) in the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm bought 207,809 shares of the company's stock, valued at approximately $6,901,000. DraftKings makes up approximately 2.6% of Capital Impact Advisors LLC's portfolio, making the stock its 21st largest position.

Several other institutional investors also recently bought and sold shares of DKNG. The Manufacturers Life Insurance Company grew its stake in DraftKings by 2.2% during the fourth quarter. The Manufacturers Life Insurance Company now owns 26,236 shares of the company's stock valued at $976,000 after acquiring an additional 576 shares in the last quarter. Algert Global LLC grew its stake in DraftKings by 14.4% during the fourth quarter. Algert Global LLC now owns 10,798 shares of the company's stock valued at $402,000 after acquiring an additional 1,359 shares in the last quarter. Baird Financial Group Inc. purchased a new position in DraftKings during the fourth quarter valued at $424,000. CoreCap Advisors LLC grew its stake in DraftKings by 34.8% during the fourth quarter. CoreCap Advisors LLC now owns 2,433 shares of the company's stock valued at $91,000 after acquiring an additional 628 shares in the last quarter. Finally, Graham Capital Management L.P. purchased a new position in DraftKings during the fourth quarter valued at $736,000. 37.70% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In related news, CFO Alan Wayne Ellingson sold 44,693 shares of DraftKings stock in a transaction dated Tuesday, August 19th. The shares were sold at an average price of $44.90, for a total transaction of $2,006,715.70. Following the completion of the sale, the chief financial officer owned 128,131 shares in the company, valued at $5,753,081.90. This trade represents a 25.86% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Matthew Kalish sold 210,000 shares of DraftKings stock in a transaction dated Tuesday, August 12th. The shares were sold at an average price of $42.90, for a total transaction of $9,009,000.00. Following the sale, the insider owned 4,190,233 shares of the company's stock, valued at $179,760,995.70. The trade was a 4.77% decrease in their position. The disclosure for this sale can be found here. Insiders sold 816,662 shares of company stock worth $35,460,274 in the last 90 days. Company insiders own 47.08% of the company's stock.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on the stock. Morgan Stanley reaffirmed an "overweight" rating and set a $52.00 target price (up from $51.00) on shares of DraftKings in a research note on Friday, July 11th. Susquehanna reissued a "positive" rating and issued a $64.00 price objective on shares of DraftKings in a research note on Friday, August 8th. Citigroup reissued a "buy" rating on shares of DraftKings in a research note on Friday, July 11th. Jefferies Financial Group set a $54.00 price objective on shares of DraftKings in a research note on Thursday, August 21st. Finally, JMP Securities dropped their price objective on shares of DraftKings from $54.00 to $50.00 and set a "market outperform" rating for the company in a research note on Thursday, June 5th. Twenty-four equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, DraftKings presently has an average rating of "Moderate Buy" and a consensus target price of $55.12.

DraftKings Price Performance

DKNG stock opened at $45.91 on Wednesday. DraftKings Inc. has a 12 month low of $29.64 and a 12 month high of $53.61. The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 1.82. The company has a 50-day moving average price of $44.78 and a 200 day moving average price of $39.63. The stock has a market cap of $40.84 billion, a PE ratio of -70.63, a P/E/G ratio of 1.10 and a beta of 1.73.

DraftKings (NASDAQ:DKNG - Get Free Report) last released its quarterly earnings results on Thursday, August 7th. The company reported $0.30 EPS for the quarter, topping analysts' consensus estimates of $0.16 by $0.14. DraftKings had a negative net margin of 5.63% and a negative return on equity of 30.06%. The firm had revenue of $1.51 billion during the quarter, compared to analysts' expectations of $1.39 billion. During the same period in the previous year, the company earned $0.12 EPS. The firm's revenue for the quarter was up 36.9% compared to the same quarter last year. DraftKings has set its FY 2025 guidance at EPS. Equities research analysts anticipate that DraftKings Inc. will post 0.64 earnings per share for the current year.

About DraftKings

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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