Contour Asset Management LLC Raises Holdings in DraftKings Inc. $DKNG

Key Points

• Contour Asset Management LLC increased its stake in DraftKings by 129.4%, now holding 2,501,703 shares, representing about 3.3% of its investment portfolio.
• DraftKings reported a quarterly revenue of $1.51 billion, surpassing analyst expectations, and achieved an EPS of $0.30, exceeding estimates of $0.16.
• Multiple research firms set new price targets for DraftKings, with Truist Financial raising its target from $50 to $55 and overall analyst consensus rating at a "Moderate Buy" with an average price target of $54.50.

Contour Asset Management LLC lifted its stake in shares of DraftKings Inc. (NASDAQ:DKNG - Free Report) by 129.4% during the first quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 2,501,703 shares of the company's stock after acquiring an additional 1,410,977 shares during the quarter. DraftKings makes up approximately 3.3% of Contour Asset Management LLC's holdings, making the stock its 12th biggest holding. Contour Asset Management LLC owned about 0.28% of DraftKings worth $83,082,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently bought and sold shares of the company. Raiffeisen Bank International AG bought a new stake in DraftKings during the 4th quarter valued at $25,000. FNY Investment Advisers LLC bought a new position in shares of DraftKings during the 1st quarter worth $26,000. Smallwood Wealth Investment Management LLC bought a new position in shares of DraftKings during the 1st quarter worth $27,000. Point72 Asia Singapore Pte. Ltd. bought a new position in shares of DraftKings during the 4th quarter worth $28,000. Finally, GPS Wealth Strategies Group LLC grew its position in shares of DraftKings by 197.9% during the 1st quarter. GPS Wealth Strategies Group LLC now owns 849 shares of the company's stock worth $28,000 after buying an additional 564 shares in the last quarter. Institutional investors own 37.70% of the company's stock.

Analyst Ratings Changes

DKNG has been the topic of a number of recent research reports. Jefferies Financial Group set a $54.00 price target on DraftKings in a research report on Thursday, August 21st. Morgan Stanley reissued an "overweight" rating and set a $52.00 price target (up previously from $51.00) on shares of DraftKings in a research report on Friday, July 11th. Mizuho cut their price target on shares of DraftKings from $59.00 to $58.00 and set an "outperform" rating on the stock in a report on Monday, May 12th. Sanford C. Bernstein initiated coverage on DraftKings in a research note on Wednesday, June 4th. They set an "outperform" rating and a $46.00 target price on the stock. Finally, Macquarie reduced their target price on DraftKings from $55.00 to $53.00 and set an "outperform" rating on the stock in a research report on Monday, May 12th. Twenty-four investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $54.37.

Insider Transactions at DraftKings

In related news, insider Matthew Kalish sold 210,000 shares of the stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $42.90, for a total value of $9,009,000.00. Following the transaction, the insider owned 4,190,233 shares in the company, valued at approximately $179,760,995.70. This represents a 4.77% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Alan Wayne Ellingson sold 44,693 shares of DraftKings stock in a transaction that occurred on 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 sale, the chief financial officer owned 128,131 shares of the company's stock, valued at approximately $5,753,081.90. The trade was a 25.86% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 816,662 shares of company stock valued at $35,460,274 over the last quarter. Company insiders own 51.19% of the company's stock.

DraftKings Stock Performance

Shares of NASDAQ DKNG traded down $0.84 during mid-day trading on Friday, hitting $46.56. The stock had a trading volume of 8,402,464 shares, compared to its average volume of 7,660,442. The firm has a market cap of $41.41 billion, a PE ratio of -71.63, a PEG ratio of 1.12 and a beta of 1.73. The company has a debt-to-equity ratio of 1.82, a quick ratio of 1.34 and a current ratio of 1.34. The company has a 50 day moving average of $44.63 and a two-hundred day moving average of $39.72. DraftKings Inc. has a twelve month low of $29.64 and a twelve month high of $53.61.

DraftKings (NASDAQ:DKNG - Get Free Report) last posted its quarterly earnings results on Thursday, August 7th. The company reported $0.30 earnings per share for the quarter, beating the consensus estimate of $0.16 by $0.14. The business had revenue of $1.51 billion for the quarter, compared to the consensus estimate 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 quarterly revenue was up 36.9% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.12 EPS. DraftKings has set its FY 2025 guidance at EPS. Research analysts predict that DraftKings Inc. will post 0.64 EPS for the current fiscal year.

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.