Cwm LLC Acquires 47,875 Shares of DraftKings Inc. $DKNG

Key Points

• Cwm LLC increased its stake in DraftKings by 35.4%, acquiring an additional 47,875 shares, bringing their total holdings to 183,230 shares valued at approximately $7.86 million.
• DraftKings reported a quarterly earnings per share of $0.30, exceeding analysts' expectations, with a revenue of $1.51 billion—a 36.9% increase compared to the prior year.
• Insider trading activity revealed that DraftKings executives sold a significant number of shares, with insiders collectively selling 658,331 shares valued at $29.29 million in the last quarter.

Cwm LLC increased its holdings in shares of DraftKings Inc. (NASDAQ:DKNG - Free Report) by 35.4% during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 183,230 shares of the company's stock after purchasing an additional 47,875 shares during the quarter. Cwm LLC's holdings in DraftKings were worth $7,859,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds also recently bought and sold shares of the company. FNY Investment Advisers LLC purchased a new stake in DraftKings during the first quarter valued at $26,000. TD Private Client Wealth LLC increased its position in DraftKings by 54.4% during the second quarter. TD Private Client Wealth LLC now owns 800 shares of the company's stock valued at $34,000 after acquiring an additional 282 shares during the last quarter. Smallwood Wealth Investment Management LLC purchased a new stake in DraftKings during the first quarter valued at $27,000. Bank of Jackson Hole Trust purchased a new stake in DraftKings during the first quarter valued at $31,000. Finally, Summit Securities Group LLC increased its position in DraftKings by 349.1% during the first quarter. Summit Securities Group LLC now owns 1,042 shares of the company's stock valued at $35,000 after acquiring an additional 810 shares during the last quarter. Hedge funds and other institutional investors own 37.70% of the company's stock.

DraftKings Stock Performance

NASDAQ:DKNG opened at $34.36 on Wednesday. The stock has a 50-day moving average price of $42.76 and a 200 day moving average price of $39.59. The stock has a market capitalization of $17.06 billion, a P/E ratio of -52.86, a P/E/G ratio of 0.72 and a beta of 1.99. 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.

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, topping the consensus estimate of $0.16 by $0.14. DraftKings had a negative return on equity of 30.06% and a negative net margin of 5.63%.The business had revenue of $1.51 billion during the quarter, compared to the consensus estimate of $1.39 billion. During the same period in the prior year, the company posted $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 forecast that DraftKings Inc. will post 0.64 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of analysts recently commented on the company. Weiss Ratings reiterated a "sell (d-)" rating on shares of DraftKings in a research report on Wednesday, October 8th. JPMorgan Chase & Co. began 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. Truist Financial lifted their price objective on DraftKings from $50.00 to $55.00 and gave the company a "buy" rating in a research report on Wednesday, July 16th. Jefferies Financial Group set a $52.00 price objective on DraftKings in a research note on Monday, October 6th. Finally, Berenberg Bank set a $43.00 target price on shares of DraftKings and gave the stock a "buy" rating in a research note on Thursday, October 9th. Twenty-seven research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $53.00.

Insider Activity

In other DraftKings news, CFO Alan Wayne Ellingson sold 44,693 shares of the business's stock in a transaction on Tuesday, August 19th. The shares were sold at an average price of $44.90, for a total value of $2,006,715.70. Following the sale, the chief financial officer owned 128,131 shares in the company, valued at $5,753,081.90. The trade was a 25.86% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider R Stanton Dodge sold 105,554 shares of the stock in a transaction dated Tuesday, August 5th. The shares were sold at an average price of $44.60, for a total transaction of $4,707,708.40. Following the transaction, the insider directly owned 500,000 shares of the company's stock, valued at $22,300,000. This trade represents a 17.43% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 658,331 shares of company stock valued at $29,285,365 in the last quarter. Company insiders own 47.08% of the company's stock.

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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