DraftKings Inc. $DKNG Shares Sold by EULAV Asset Management

Key Points

• EULAV Asset Management cut its DraftKings stake by 76.9% in the fourth quarter, selling 200,000 shares and leaving it with 60,000 shares worth about $2.07 million.
• DraftKings reported quarterly earnings of $0.20 per share, missing analyst estimates, while revenue of $1.65 billion topped expectations and rose 16.8% year over year.
• Wall Street remains broadly positive on DKNG, with a Moderate Buy consensus and an average price target of $34.35, even as the stock traded down 1.7% to $24.93.

EULAV Asset Management decreased its holdings in DraftKings Inc. (NASDAQ:DKNG - Free Report) by 76.9% in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 60,000 shares of the company's stock after selling 200,000 shares during the quarter. EULAV Asset Management's holdings in DraftKings were worth $2,068,000 as of its most recent SEC filing.

A number of other institutional investors have also recently made changes to their positions in DKNG. Viking Global Investors LP acquired a new stake in shares of DraftKings in the 3rd quarter worth $561,125,000. Norges Bank acquired a new stake in shares of DraftKings in the 4th quarter worth $284,466,000. AQR Capital Management LLC boosted its position in shares of DraftKings by 63.5% in the 3rd quarter. AQR Capital Management LLC now owns 11,685,672 shares of the company's stock worth $437,044,000 after purchasing an additional 4,538,007 shares in the last quarter. Eminence Capital LP boosted its position in shares of DraftKings by 31.9% in the 3rd quarter. Eminence Capital LP now owns 6,274,863 shares of the company's stock worth $234,680,000 after purchasing an additional 1,517,413 shares in the last quarter. Finally, Vanguard Group Inc. boosted its position in shares of DraftKings by 3.1% in the 4th quarter. Vanguard Group Inc. now owns 44,758,204 shares of the company's stock worth $1,542,368,000 after purchasing an additional 1,354,457 shares in the last quarter. Institutional investors and hedge funds own 37.70% of the company's stock.

DraftKings Stock Down 1.7%

Shares of NASDAQ DKNG opened at $24.93 on Friday. The firm has a market cap of $12.37 billion, a price-to-earnings ratio of 415.50 and a beta of 1.66. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 3.03. DraftKings Inc. has a 52-week low of $20.46 and a 52-week high of $48.78. The business's 50 day moving average is $23.80 and its two-hundred day moving average is $27.61.

DraftKings (NASDAQ:DKNG - Get Free Report) last announced its earnings results on Friday, May 8th. The company reported $0.20 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.22 by ($0.02). DraftKings had a net margin of 0.93% and a return on equity of 13.51%. The firm had revenue of $1.65 billion during the quarter, compared to analysts' expectations of $1.63 billion. During the same period in the previous year, the firm earned ($0.07) EPS. The firm's revenue for the quarter was up 16.8% compared to the same quarter last year. Research analysts predict that DraftKings Inc. will post 0.6 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on DKNG. Scotiabank upgraded DraftKings to an "outperform" rating in a research note on Friday, April 24th. Northland Securities set a $27.00 target price on DraftKings in a research note on Monday, May 11th. Freedom Capital upgraded DraftKings to a "strong-buy" rating in a research note on Wednesday, May 20th. Argus lowered DraftKings from a "buy" rating to a "hold" rating in a research note on Tuesday, March 17th. Finally, Deutsche Bank Aktiengesellschaft lowered DraftKings from a "hold" rating to a "hold" rating in a research note on Friday, April 24th. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $34.35.

Insider Transactions at DraftKings

In other news, Director Woodrow Levin sold 34,234 shares of the stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $25.71, for a total transaction of $880,156.14. Following the completion of the sale, the director owned 29,820 shares in the company, valued at approximately $766,672.20. This represents a 53.45% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Paul Liberman sold 484,417 shares of the stock in a transaction dated Wednesday, March 11th. The stock was sold at an average price of $25.16, for a total transaction of $12,187,931.72. Following the sale, the insider owned 213,597 shares of the company's stock, valued at $5,374,100.52. This trade represents a 69.40% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 521,663 shares of company stock worth $13,144,962. Company insiders own 47.18% of the company's stock.

DraftKings Profile

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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