Fred Alger Management LLC Sells 631,911 Shares of DraftKings Inc. $DKNG

Key Points

• Fred Alger Management LLC has reduced its stake in DraftKings Inc. by 35.4%, selling 631,911 shares, and now owns approximately 0.13% of the company worth $38.25 million.
• DraftKings recently reported earnings of $0.30 per share, exceeding analyst forecasts and showing a 36.9% revenue increase compared to the same quarter last year.
• As of now, 37.70% of DraftKings stock is held by institutional investors, with significant trading activity noted among several large investment firms.

Fred Alger Management LLC cut its position in DraftKings Inc. (NASDAQ:DKNG - Free Report) by 35.4% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 1,151,787 shares of the company's stock after selling 631,911 shares during the quarter. Fred Alger Management LLC owned 0.13% of DraftKings worth $38,251,000 as of its most recent SEC filing.

Several other large investors have also recently bought and sold shares of DKNG. Raiffeisen Bank International AG bought a new position in shares of DraftKings during the fourth quarter worth about $25,000. FNY Investment Advisers LLC bought a new position in shares of DraftKings during the first quarter worth about $26,000. Smallwood Wealth Investment Management LLC bought a new position in shares of DraftKings during the first quarter worth about $27,000. Point72 Asia Singapore Pte. Ltd. bought a new position in shares of DraftKings during the fourth quarter worth about $28,000. Finally, GPS Wealth Strategies Group LLC raised its position in shares of DraftKings by 197.9% during the first quarter. GPS Wealth Strategies Group LLC now owns 849 shares of the company's stock worth $28,000 after acquiring an additional 564 shares during the last quarter. 37.70% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on DKNG shares. Morgan Stanley restated an "overweight" rating and set a $52.00 price objective (up from $51.00) on shares of DraftKings in a research report on Friday, July 11th. Stifel Nicolaus decreased their target price on DraftKings from $53.00 to $51.00 and set a "buy" rating for the company in a research note on Wednesday, July 16th. Deutsche Bank Aktiengesellschaft set a $47.00 target price on DraftKings and gave the stock a "hold" rating in a research note on Friday, August 8th. Citigroup reaffirmed a "buy" rating on shares of DraftKings in a research note on Friday, July 11th. Finally, JMP Securities decreased their target price on DraftKings from $54.00 to $50.00 and set a "market outperform" rating for the company in a research note on Thursday, June 5th. Twenty-four equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, DraftKings currently has a consensus rating of "Moderate Buy" and an average price target of $55.12.

DraftKings Stock Down 4.1%

DraftKings stock traded down $1.88 during mid-day trading on Friday, reaching $43.99. The stock had a trading volume of 12,821,051 shares, compared to its average volume of 10,076,191. The company has a debt-to-equity ratio of 1.82, a quick ratio of 1.34 and a current ratio of 1.34. DraftKings Inc. has a fifty-two week low of $29.64 and a fifty-two week high of $53.61. The stock's 50-day simple moving average is $44.97 and its 200-day simple moving average is $39.68. The firm has a market capitalization of $21.84 billion, a PE ratio of -67.68, a price-to-earnings-growth ratio of 1.08 and a beta of 1.73.

DraftKings (NASDAQ:DKNG - Get Free Report) last announced its earnings results on Thursday, August 7th. The company reported $0.30 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.16 by $0.14. The company had revenue of $1.51 billion for 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%.DraftKings's quarterly revenue was up 36.9% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.12 earnings per share. DraftKings has set its FY 2025 guidance at EPS. On average, sell-side analysts forecast that DraftKings Inc. will post 0.64 EPS for the current fiscal year.

Insider Activity at DraftKings

In related news, CFO Alan Wayne Ellingson sold 44,693 shares of DraftKings stock in a transaction that occurred on Tuesday, August 19th. The stock was sold at an average price of $44.90, for a total transaction of $2,006,715.70. Following the transaction, 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 ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider R Stanton Dodge sold 158,331 shares of DraftKings stock in a transaction on Wednesday, June 18th. The stock was sold at an average price of $39.00, for a total value of $6,174,909.00. Following the sale, the insider owned 504,381 shares in the company, valued at $19,670,859. The trade was a 23.89% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 816,662 shares of company stock valued at $35,460,274 over the last 90 days. Corporate insiders own 51.19% 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.