DraftKings Inc. $DKNG Shares Bought by Kodai Capital Management LP

Key Points

• Kodai Capital Management LP increased its ownership in DraftKings by 639.7%, acquiring an additional 711,841 shares, bringing its total to approximately 823,112 shares valued at $27.34 million.
• Insider sales included Matthew Kalish selling 210,000 shares for $9 million, resulting in a 4.77% decrease in his ownership.
• DraftKings reported a 36.9% increase in revenue year-over-year, with earnings per share of $0.30, significantly surpassing analyst expectations.

Kodai Capital Management LP raised its holdings in shares of DraftKings Inc. (NASDAQ:DKNG - Free Report) by 639.7% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 823,112 shares of the company's stock after buying an additional 711,841 shares during the period. Kodai Capital Management LP owned about 0.09% of DraftKings worth $27,336,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in the business. T. Rowe Price Investment Management Inc. boosted its position in shares of DraftKings by 0.7% in the first quarter. T. Rowe Price Investment Management Inc. now owns 18,700,071 shares of the company's stock worth $621,030,000 after purchasing an additional 130,434 shares during the period. Janus Henderson Group PLC boosted its position in shares of DraftKings by 31,346.8% in the fourth quarter. Janus Henderson Group PLC now owns 9,381,853 shares of the company's stock worth $349,005,000 after purchasing an additional 9,352,019 shares during the period. Baillie Gifford & Co. boosted its position in shares of DraftKings by 26.5% in the first quarter. Baillie Gifford & Co. now owns 8,390,236 shares of the company's stock worth $278,640,000 after purchasing an additional 1,756,778 shares during the period. Massachusetts Financial Services Co. MA boosted its position in shares of DraftKings by 4.4% in the first quarter. Massachusetts Financial Services Co. MA now owns 7,098,641 shares of the company's stock worth $235,746,000 after purchasing an additional 301,134 shares during the period. Finally, Whale Rock Capital Management LLC boosted its position in shares of DraftKings by 9.2% in the fourth quarter. Whale Rock Capital Management LLC now owns 4,971,886 shares of the company's stock worth $184,954,000 after purchasing an additional 416,881 shares during the period. 37.70% of the stock is owned by hedge funds and other institutional investors.

DraftKings Stock Performance

Shares of NASDAQ:DKNG traded up $0.30 during trading on Wednesday, hitting $48.21. 2,012,789 shares of the stock traded hands, compared to its average volume of 10,128,138. The company has a quick ratio of 1.34, a current ratio of 1.34 and a debt-to-equity ratio of 1.82. The company has a market cap of $42.88 billion, a price-to-earnings ratio of -74.20, a P/E/G ratio of 1.14 and a beta of 1.73. The company has a fifty day moving average price of $44.35 and a two-hundred day moving average price of $39.74. DraftKings Inc. has a 52-week low of $29.64 and a 52-week high of $53.61.

DraftKings (NASDAQ:DKNG - Get Free Report) last posted its 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 firm had revenue of $1.51 billion during the quarter, compared to analyst estimates of $1.39 billion. DraftKings had a negative net margin of 5.63% and a negative return on equity of 30.06%. The business's quarterly revenue was up 36.9% on a year-over-year basis. During the same period in the previous year, the firm earned $0.12 EPS. DraftKings has set its FY 2025 guidance at EPS. As a group, equities analysts predict that DraftKings Inc. will post 0.64 EPS for the current year.

Analyst Ratings Changes

DKNG has been the subject of a number of research reports. Guggenheim dropped their target price on shares of DraftKings from $61.00 to $60.00 and set a "buy" rating for the company in a research report on Monday, May 12th. Bank of America reduced their price target on shares of DraftKings from $60.00 to $50.00 and set a "buy" rating on the stock in a research note on Friday, May 9th. Mizuho reduced their price target on shares of DraftKings from $59.00 to $58.00 and set an "outperform" rating on the stock in a research note on Monday, May 12th. Needham & Company LLC reissued a "buy" rating and set a $65.00 target price on shares of DraftKings in a research report on Friday, May 9th. Finally, Sanford C. Bernstein began coverage on shares of DraftKings in a research report on Wednesday, June 4th. They set an "outperform" rating and a $46.00 target price on the stock. Twenty-five investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $54.50.

Insider Buying and Selling

In other DraftKings news, CFO Alan Wayne Ellingson sold 44,693 shares of DraftKings 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 sale, the chief financial officer owned 128,131 shares of the company's stock, 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 SEC, which is available through this hyperlink. Also, Director Jocelyn Moore sold 4,861 shares of DraftKings stock in a transaction on Wednesday, August 13th. The stock was sold at an average price of $43.21, for a total transaction of $210,043.81. Following the sale, the director directly owned 1,461 shares in the company, valued at approximately $63,129.81. This trade represents a 76.89% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 711,108 shares of company stock worth $30,460,181 in the last 90 days. 47.08% of the stock is owned by insiders.

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.