DraftKings Inc. $DKNG Shares Bought by T. Rowe Price Investment Management Inc.

Key Points

• T. Rowe Price Investment Management Inc. increased its stake in DraftKings by 0.7%, owning approximately 18.7 million shares valued at $621 million.
• DraftKings reported a 36.9% year-over-year revenue increase to $1.51 billion and earnings per share of $0.30, surpassing analysts' expectations.
• Analysts maintain a consensus rating of "Moderate Buy" on DraftKings, with a target price of $54.50 following multiple bullish ratings from research firms.

T. Rowe Price Investment Management Inc. grew its stake in shares of DraftKings Inc. (NASDAQ:DKNG - Free Report) by 0.7% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 18,700,071 shares of the company's stock after acquiring an additional 130,434 shares during the quarter. T. Rowe Price Investment Management Inc. owned about 2.12% of DraftKings worth $621,030,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently modified their holdings of the company. Raiffeisen Bank International AG acquired a new position in shares of DraftKings during the 4th quarter valued at about $25,000. FNY Investment Advisers LLC acquired a new stake in DraftKings during the 1st quarter worth approximately $26,000. Smallwood Wealth Investment Management LLC acquired a new stake in DraftKings during the 1st quarter worth approximately $27,000. Point72 Asia Singapore Pte. Ltd. acquired a new stake in DraftKings during the 4th quarter worth approximately $28,000. Finally, GPS Wealth Strategies Group LLC increased its position in 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 purchasing an additional 564 shares in the last quarter. Institutional investors and hedge funds own 37.70% of the company's stock.

DraftKings Stock Performance

DraftKings stock opened at $45.02 on Wednesday. The stock has a market cap of $40.04 billion, a P/E ratio of -69.26, a price-to-earnings-growth ratio of 1.08 and a beta of 1.70. The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 1.82. The stock has a 50 day moving average of $42.73 and a 200-day moving average of $39.52. 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 released its earnings results on Thursday, August 7th. The company reported $0.30 EPS for the quarter, beating the consensus estimate of $0.16 by $0.14. The company had revenue of $1.51 billion during the quarter, compared to analysts' expectations of $1.39 billion. DraftKings had a negative return on equity of 30.06% and a negative net margin of 5.63%.The business's revenue was up 36.9% on a year-over-year basis. During the same period in the prior year, the business posted $0.12 EPS. DraftKings has set its FY 2025 guidance at EPS. On average, analysts expect that DraftKings Inc. will post 0.64 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of research firms recently issued reports on DKNG. Citigroup reissued a "buy" rating on shares of DraftKings in a research report on Friday, July 11th. Jefferies Financial Group reissued a "buy" rating and set a $54.00 target price (up previously from $53.00) on shares of DraftKings in a research report on Friday, August 8th. BMO Capital Markets reissued an "outperform" rating and set a $65.00 target price on shares of DraftKings in a research report on Thursday, April 24th. Northland Securities set a $50.00 target price on shares of DraftKings in a research report on Friday, April 25th. Finally, JMP Securities dropped their target price on shares of DraftKings from $54.00 to $50.00 and set a "market outperform" rating for the company in a research report on Thursday, June 5th. Twenty-five research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $54.50.

Insiders Place Their Bets

In related news, insider R Stanton Dodge sold 158,331 shares of the company's stock in a transaction that occurred on Wednesday, June 18th. The stock was sold at an average price of $39.00, for a total transaction of $6,174,909.00. Following the sale, the insider directly owned 504,381 shares of the company's stock, valued at approximately $19,670,859. This represents a 23.89% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Jocelyn Moore sold 4,861 shares of the company's stock in a transaction that occurred on Wednesday, August 13th. The shares were sold at an average price of $43.21, for a total value of $210,043.81. Following the sale, the director directly owned 1,461 shares in the company, valued at approximately $63,129.81. This represents a 76.89% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 645,938 shares of company stock valued at $26,823,776. Corporate 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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