Capital Research Global Investors Buys 2,372,520 Shares of DraftKings Inc. $DKNG

Key Points

• Capital Research Global Investors boosted its DraftKings stake by 55.9% in the fourth quarter, buying 2,372,520 additional shares and bringing its total holdings to 6,615,721 shares worth about $227.98 million.
• DraftKings reported quarterly earnings of $0.20 per share, missing estimates by $0.02, while revenue of $1.65 billion slightly topped expectations and rose 16.8% year over year.
• Analysts remain mostly bullish on DKNG, with an overall “Moderate Buy” rating and an average price target of $34.35, even as insiders have sold more than 521,000 shares over the past 90 days.

Capital Research Global Investors increased its stake in shares of DraftKings Inc. (NASDAQ:DKNG - Free Report) by 55.9% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 6,615,721 shares of the company's stock after buying an additional 2,372,520 shares during the quarter. Capital Research Global Investors owned 1.33% of DraftKings worth $227,978,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also modified their holdings of the company. Dagco Inc. bought a new position in shares of DraftKings during the 4th quarter worth approximately $26,000. Ameriflex Group Inc. lifted its position 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 buying an additional 405 shares during the period. Asset Dedication LLC bought a new position in shares of DraftKings during the 3rd quarter worth approximately $37,000. Montag A & Associates Inc. lifted its position in shares of DraftKings by 82.5% during the 4th quarter. Montag A & Associates Inc. now owns 1,106 shares of the company's stock worth $38,000 after buying an additional 500 shares during the period. Finally, Aventura Private Wealth LLC bought a new position in shares of DraftKings during the 4th quarter worth approximately $39,000. Institutional investors own 37.70% of the company's stock.

DraftKings Price Performance

NASDAQ DKNG opened at $24.93 on Monday. The stock has a fifty day moving average of $23.80 and a 200-day moving average of $27.60. The stock has a market capitalization of $12.37 billion, a P/E ratio of 415.50 and a beta of 1.66. DraftKings Inc. has a 52 week low of $20.46 and a 52 week high of $48.78. The company has a debt-to-equity ratio of 3.03, a quick ratio of 1.02 and a current ratio of 1.02.

DraftKings (NASDAQ:DKNG - Get Free Report) last released its earnings results on Friday, May 8th. The company reported $0.20 EPS for the quarter, missing the consensus estimate of $0.22 by ($0.02). The firm had revenue of $1.65 billion during the quarter, compared to analyst estimates of $1.63 billion. DraftKings had a net margin of 0.93% and a return on equity of 13.51%. The firm's quarterly revenue was up 16.8% on a year-over-year basis. During the same period last year, the business posted ($0.07) earnings per share. On average, equities research analysts forecast that DraftKings Inc. will post 0.6 EPS for the current year.

Insider Activity

In other news, insider Paul Liberman sold 484,417 shares of DraftKings stock in a transaction on Wednesday, March 11th. The stock was sold at an average price of $25.16, for a total value of $12,187,931.72. Following the completion of the sale, the insider directly owned 213,597 shares of the company's stock, valued at approximately $5,374,100.52. This trade represents a 69.40% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Woodrow Levin sold 34,234 shares of DraftKings stock in a transaction on Monday, May 18th. The stock was sold at an average price of $25.71, for a total value of $880,156.14. Following the sale, the director directly owned 29,820 shares of the company's stock, valued at approximately $766,672.20. This trade represents a 53.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 521,663 shares of company stock valued at $13,144,962. Company insiders own 47.18% of the company's stock.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on DKNG shares. Morgan Stanley reiterated an "overweight" rating on shares of DraftKings in a research report on Thursday, May 21st. Stephens started coverage on DraftKings in a research report on Friday, April 24th. They issued an "overweight" rating for the company. Mizuho lifted their price objective on DraftKings from $44.00 to $45.00 and gave the company an "outperform" rating in a research report on Tuesday, May 12th. The Goldman Sachs Group cut their price objective on DraftKings from $54.00 to $31.00 and set a "buy" rating for the company in a research report on Tuesday, February 17th. Finally, Canaccord Genuity Group cut their price objective on DraftKings from $50.00 to $44.00 and set a "buy" rating for the company in a research report on Friday, February 13th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, DraftKings currently has an average rating of "Moderate Buy" and an average price target of $34.35.

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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