Charles Schwab Investment Management Inc. Boosts Position in DraftKings Inc. (NASDAQ:DKNG)

Key Points

• Charles Schwab Investment Management Inc. increased its stake in DraftKings Inc. by 3.5%, now owning over 3.3 million shares valued at approximately $111 million.
• DraftKings reported a 36.9% year-over-year increase in revenue for the quarter, reaching $1.51 billion and exceeding analyst expectations.
• Analysts remain optimistic, with the stock receiving upgrades from various firms, including a "buy" rating from Wall Street Zen and a price target increase from Jefferies to $54.00.

Charles Schwab Investment Management Inc. boosted its position in shares of DraftKings Inc. (NASDAQ:DKNG - Free Report) by 3.5% in the first quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 3,355,077 shares of the company's stock after acquiring an additional 113,780 shares during the quarter. Charles Schwab Investment Management Inc. owned 0.38% of DraftKings worth $111,422,000 at the end of the most recent reporting period.

Other hedge funds also recently bought and sold shares of the company. Raiffeisen Bank International AG purchased a new stake in DraftKings during the fourth quarter valued at $25,000. FNY Investment Advisers LLC purchased a new stake in DraftKings during the first quarter valued at $26,000. Smallwood Wealth Investment Management LLC purchased a new stake in DraftKings during the first quarter valued at $27,000. Point72 Asia Singapore Pte. Ltd. purchased a new stake in DraftKings during the fourth quarter valued at $28,000. Finally, GPS Wealth Strategies Group LLC increased its position in DraftKings by 197.9% during the first quarter. GPS Wealth Strategies Group LLC now owns 849 shares of the company's stock valued at $28,000 after acquiring an additional 564 shares during the last quarter. Hedge funds and other institutional investors own 37.70% of the company's stock.

DraftKings Price Performance

NASDAQ:DKNG opened at $42.73 on Tuesday. The firm has a market capitalization of $38.00 billion, a price-to-earnings ratio of -65.74, a PEG ratio of 1.25 and a beta of 1.70. DraftKings Inc. has a 1 year low of $29.29 and a 1 year high of $53.61. The business has a 50 day simple moving average of $41.67 and a 200-day simple moving average of $39.41. The company has a debt-to-equity ratio of 1.82, a current ratio of 1.34 and a quick ratio of 1.34.

DraftKings (NASDAQ:DKNG - Get Free Report) last posted its quarterly earnings data on Thursday, August 7th. The company reported $0.30 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.16 by $0.14. The business had revenue of $1.51 billion during the quarter, compared to analyst estimates of $1.39 billion. DraftKings had a negative return on equity of 30.06% and a negative net margin of 5.63%. The company's revenue for the quarter was up 36.9% on a year-over-year basis. During the same period last year, the company earned $0.12 EPS. Equities analysts forecast that DraftKings Inc. will post 0.64 EPS for the current year.

Insider Activity

In other news, CFO Alan Wayne Ellingson sold 6,829 shares of the firm's stock in a transaction that occurred on Friday, May 16th. The stock was sold at an average price of $36.77, for a total value of $251,102.33. Following the completion of the sale, the chief financial officer directly owned 171,268 shares of the company's stock, valued at $6,297,524.36. This trade represents a 3.83% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider R Stanton Dodge sold 105,554 shares of the firm's stock in a transaction that occurred on Tuesday, August 5th. The shares were sold at an average price of $44.60, for a total value of $4,707,708.40. Following the completion of the sale, the insider directly owned 500,000 shares of the company's stock, valued at $22,300,000. The trade was a 17.43% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 432,181 shares of company stock valued at $17,606,625 in the last ninety days. Insiders own 47.08% of the company's stock.

Analyst Upgrades and Downgrades

A number of analysts have commented on the company. Wall Street Zen upgraded DraftKings from a "hold" rating to a "buy" rating in a research report on Saturday. Jefferies Financial Group restated a "buy" rating and issued a $54.00 price target (up previously from $53.00) on shares of DraftKings in a research report on Friday. JPMorgan Chase & Co. initiated coverage on DraftKings in a research report on Monday, June 23rd. They issued an "overweight" rating and a $50.00 price target for the company. Bank of America reduced their price target on DraftKings from $60.00 to $50.00 and set a "buy" rating for the company in a research report on Friday, May 9th. Finally, Stifel Nicolaus reduced their price target on DraftKings from $53.00 to $51.00 and set a "buy" rating for the company in a research report on Wednesday, July 16th. Two investment analysts have rated the stock with a hold rating and twenty-six have issued a buy rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $54.50.

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.

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