DraftKings Inc. $DKNG Holdings Decreased by Brown Advisory Inc.

Key Points

• Brown Advisory Inc. cut its DraftKings stake by 36.3% in the fourth quarter, selling 1.54 million shares and leaving it with 2.71 million shares worth about $93.5 million.
• Several DraftKings insiders also sold shares recently, including R. Stanton Dodge and Woodrow Levin, bringing total insider sales over the last three months to 97,596 shares valued at $2.76 million.
• DraftKings reported better-than-expected revenue of $1.65 billion for the quarter, though EPS missed estimates, and analysts currently rate the stock a consensus Moderate Buy with an average price target of $34.21.

Brown Advisory Inc. decreased its holdings in shares of DraftKings Inc. (NASDAQ:DKNG - Free Report) by 36.3% during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 2,714,552 shares of the company's stock after selling 1,544,462 shares during the quarter. Brown Advisory Inc. owned 0.55% of DraftKings worth $93,543,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors and hedge funds have also modified their holdings of DKNG. Dagco Inc. acquired a new stake in DraftKings during the fourth quarter valued at $26,000. Ameriflex Group Inc. boosted its position in DraftKings by 100.0% during the third quarter. Ameriflex Group Inc. now owns 810 shares of the company's stock valued at $30,000 after purchasing an additional 405 shares during the last quarter. Asset Dedication LLC acquired a new stake in DraftKings during the third quarter valued at $37,000. Montag A & Associates Inc. boosted its position in DraftKings by 82.5% during the fourth quarter. Montag A & Associates Inc. now owns 1,106 shares of the company's stock valued at $38,000 after purchasing an additional 500 shares during the last quarter. Finally, Aventura Private Wealth LLC acquired a new stake in DraftKings during the fourth quarter valued at $39,000. Hedge funds and other institutional investors own 37.70% of the company's stock.

Insider Activity

In related news, insider R Stanton Dodge sold 62,500 shares of the business's stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $29.68, for a total transaction of $1,855,000.00. Following the completion of the transaction, the insider owned 556,258 shares of the company's stock, valued at approximately $16,509,737.44. The trade was a 10.10% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Woodrow Levin sold 34,234 shares of the business's stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $25.71, for a total value of $880,156.14. Following the transaction, the director directly owned 29,820 shares of the company's stock, valued at $766,672.20. This represents a 53.45% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 97,596 shares of company stock valued at $2,756,991 in the last three months. 47.18% of the stock is owned by insiders.

DraftKings Price Performance

Shares of NASDAQ:DKNG opened at $29.00 on Monday. DraftKings Inc. has a fifty-two week low of $20.46 and a fifty-two week high of $48.78. The company has a debt-to-equity ratio of 3.03, a current ratio of 1.02 and a quick ratio of 1.02. The stock has a market capitalization of $14.39 billion, a P/E ratio of 483.33 and a beta of 1.66. The business has a 50-day moving average of $24.47 and a two-hundred day moving average of $27.55.

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

Analysts Set New Price Targets

A number of analysts recently issued reports on DKNG shares. Guggenheim reduced their price objective on DraftKings from $37.00 to $35.00 and set a "buy" rating for the company in a research report on Monday, May 11th. Northland Securities set a $27.00 price objective on DraftKings in a research report on Monday, May 11th. Susquehanna reduced their price objective on DraftKings from $33.00 to $32.00 and set a "positive" rating for the company in a research report on Tuesday, March 31st. Jefferies Financial Group reissued a "buy" rating on shares of DraftKings in a research report on Wednesday. Finally, Citizens Jmp reduced their price objective on DraftKings from $38.00 to $34.00 and set a "market outperform" rating for the company in a research report on Wednesday, April 1st. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $34.21.

Key DraftKings News

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: DraftKings is drawing bullish attention after Oppenheimer reiterated a Buy rating, reinforcing optimism around the company’s growth outlook. DraftKings (DKNG) Receives a Buy from Oppenheimer
• Positive Sentiment: Investor enthusiasm picked up after DraftKings disclosed strong growth in its Predictions platform, with May volume reportedly surging and some articles calling it a potential new growth engine for the stock. Why DraftKings (DKNG) Stock Is Up Today
• Positive Sentiment: DraftKings also benefited from World Cup-related optimism, with analysts saying it could be a clear winner as sports betting activity rises during the tournament and marketing spend ramps up. Intel surges on rare double upgrade, DraftKings scores ahead of World Cup
• Positive Sentiment: Unusually heavy call-option buying and a strong weekly rally suggest traders are positioning for additional upside in DKNG. DKNG Bulls Are Eyeing A Breakout After Strongest Weekly Rally In 16 Months
• Neutral Sentiment: Some commentary notes DraftKings’ prediction-market business is growing quickly but is still relatively small versus larger rivals, so the long-term opportunity remains early-stage. DraftKings: Prediction Market Potential Is Becoming Clearer
• Negative Sentiment: JPMorgan cautioned that while May operating data showed progress, it does not yet point to immediate upside, which may temper some of the bullish momentum. DKNG Bulls Are Eyeing A Breakout After Strongest Weekly Rally In 16 Months

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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