State of New Jersey Common Pension Fund D Reduces Stock Position in DraftKings Inc. $DKNG

Key Points

• The State of New Jersey Common Pension Fund D has reduced its stake in DraftKings Inc. by 6.7%, now holding 149,796 shares valued at approximately $4.98 million.
• Other institutional investors are increasing their positions, with Janus Henderson Group boosting its holdings by 31,346.8% to own over 9.38 million shares valued at about $349 million.
• DraftKings reported better-than-expected earnings with a 36.9% year-over-year increase in revenue, totaling $1.51 billion for the quarter.

State of New Jersey Common Pension Fund D lowered its position in shares of DraftKings Inc. (NASDAQ:DKNG - Free Report) by 6.7% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 149,796 shares of the company's stock after selling 10,752 shares during the quarter. State of New Jersey Common Pension Fund D's holdings in DraftKings were worth $4,975,000 as of its most recent SEC filing.

Other institutional investors have also bought and sold shares of the company. Guggenheim Capital LLC raised its holdings in shares of DraftKings by 11.3% during the fourth quarter. Guggenheim Capital LLC now owns 13,459 shares of the company's stock valued at $501,000 after purchasing an additional 1,364 shares during the period. NewEdge Advisors LLC raised its holdings in shares of DraftKings by 100.3% during the fourth quarter. NewEdge Advisors LLC now owns 53,211 shares of the company's stock valued at $1,979,000 after purchasing an additional 26,639 shares during the period. Dimensional Fund Advisors LP raised its holdings in shares of DraftKings by 6.2% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,105,643 shares of the company's stock valued at $41,129,000 after purchasing an additional 64,088 shares during the period. BI Asset Management Fondsmaeglerselskab A S raised its holdings in shares of DraftKings by 47.5% during the fourth quarter. BI Asset Management Fondsmaeglerselskab A S now owns 14,373 shares of the company's stock valued at $535,000 after purchasing an additional 4,626 shares during the period. Finally, Natixis acquired a new stake in shares of DraftKings in the 4th quarter worth about $1,528,000. Institutional investors own 37.70% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on the stock. JMP Securities lowered their target price on shares of DraftKings from $54.00 to $50.00 and set a "market outperform" rating on the stock in a report on Thursday, June 5th. Morgan Stanley reissued an "overweight" rating and issued a $52.00 price target (up from $51.00) on shares of DraftKings in a report on Friday, July 11th. Bank of America lowered their price objective on shares of DraftKings from $60.00 to $50.00 and set a "buy" rating on the stock in a research report on Friday, May 9th. Susquehanna restated a "positive" rating and set a $64.00 price objective on shares of DraftKings in a research report on Friday, August 8th. Finally, Barclays reiterated an "overweight" rating and issued a $54.00 target price (up previously from $51.00) on shares of DraftKings in a research report on Friday, August 8th. Twenty-five research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, DraftKings presently has an average rating of "Moderate Buy" and a consensus price target of $54.50.

Insider Activity at DraftKings

In related news, CFO Alan Wayne Ellingson sold 44,693 shares of the firm's stock in a transaction 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 completion of the transaction, the chief financial officer directly owned 128,131 shares of the company's stock, valued at approximately $5,753,081.90. This trade represents a 25.86% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Matthew Kalish sold 210,000 shares of the firm's stock in a transaction on 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 transaction, the insider directly 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 ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 690,631 shares of company stock valued at $28,830,492. Insiders own 51.19% of the company's stock.

DraftKings Stock Performance

DraftKings stock traded up $1.09 during midday trading on Friday, reaching $47.18. 6,724,345 shares of the company traded hands, compared to its average volume of 10,259,866. The firm has a market capitalization of $41.97 billion, a price-to-earnings ratio of -72.58, a price-to-earnings-growth ratio of 1.09 and a beta of 1.70. The business has a 50 day moving average of $43.26 and a two-hundred day moving average of $39.64. DraftKings Inc. has a 12 month low of $29.64 and a 12 month high of $53.61. 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 released 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. The business had revenue of $1.51 billion for the quarter, compared to the consensus estimate of $1.39 billion. DraftKings had a negative net margin of 5.63% and a negative return on equity of 30.06%. The company's quarterly revenue was up 36.9% on a year-over-year basis. During the same period last year, the firm earned $0.12 earnings per share. DraftKings has set its FY 2025 guidance at EPS. As a group, research analysts predict that DraftKings Inc. will post 0.64 earnings per share for the current year.

DraftKings Company 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.