DraftKings Inc. $DKNG Shares Sold by Peregrine Capital Management LLC

Key Points

• Peregrine Capital Management trimmed its DraftKings stake by 6.2% in Q1, selling 78,692 shares and leaving it with 1,196,951 shares worth about $25.9 million.
• Several analysts remain constructive on DraftKings, with a consensus rating of “Moderate Buy” and an average price target of $34.27. Recent calls included overweight/outperform ratings from Wells Fargo and Bernstein.
• DraftKings reported Q1 revenue of $1.65 billion, up 16.8% year over year, but earnings per share of $0.20 came in slightly below estimates of $0.22. The stock was trading around $25.26, well below its 1-year high of $48.78.

Peregrine Capital Management LLC cut its holdings in DraftKings Inc. (NASDAQ:DKNG - Free Report) by 6.2% in the first quarter, according to the company in its most recent disclosure with the SEC. The fund owned 1,196,951 shares of the company's stock after selling 78,692 shares during the quarter. DraftKings comprises 1.0% of Peregrine Capital Management LLC's holdings, making the stock its 18th largest position. Peregrine Capital Management LLC owned 0.24% of DraftKings worth $25,878,000 as of its most recent SEC filing.

Other institutional investors have also added to or reduced their stakes in the company. Viking Global Investors LP acquired a new position in shares of DraftKings during the third quarter valued at about $561,125,000. Capital World Investors boosted its stake in DraftKings by 181.4% in the 4th quarter. Capital World Investors now owns 18,626,429 shares of the company's stock worth $641,867,000 after purchasing an additional 12,008,357 shares in the last quarter. Janus Henderson Group PLC grew its position in DraftKings by 50.8% during the 4th quarter. Janus Henderson Group PLC now owns 25,313,909 shares of the company's stock worth $858,893,000 after purchasing an additional 8,524,923 shares during the last quarter. Norges Bank purchased a new stake in DraftKings during the 4th quarter worth approximately $284,466,000. Finally, AQR Capital Management LLC increased its stake in DraftKings by 41.0% during the 4th quarter. AQR Capital Management LLC now owns 16,474,009 shares of the company's stock valued at $567,694,000 after purchasing an additional 4,788,337 shares in the last quarter. Institutional investors and hedge funds own 37.70% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on DKNG shares. Wells Fargo & Company reiterated an "overweight" rating and set a $32.00 price objective on shares of DraftKings in a research note on Sunday, May 10th. Sanford C. Bernstein reissued an "outperform" rating on shares of DraftKings in a research report on Thursday, June 11th. Argus lowered DraftKings from a "buy" rating to a "hold" rating in a research note on Tuesday, March 17th. Guggenheim reaffirmed a "buy" rating and set a $35.00 price target on shares of DraftKings in a research report on Wednesday, June 24th. Finally, New Street Research set a $29.00 price target on DraftKings in a research note on Monday, June 1st. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating, eight have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $34.27.

Insider Activity

In other news, 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 completion of the transaction, the director owned 29,820 shares of the company's stock, valued at $766,672.20. The trade was a 53.45% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider R Stanton Dodge sold 62,500 shares of the company's stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $29.68, for a total value of $1,855,000.00. Following the completion of the sale, the insider owned 556,258 shares in the company, valued at $16,509,737.44. The trade was a 10.10% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 97,596 shares of company stock valued at $2,756,991. Insiders own 47.18% of the company's stock.

DraftKings Stock Down 2.1%

NASDAQ:DKNG opened at $25.26 on Wednesday. The firm has a market capitalization of $12.53 billion, a P/E ratio of 421.00 and a beta of 1.66. DraftKings Inc. has a 1-year low of $20.46 and a 1-year high of $48.78. The company's fifty day moving average price is $25.18 and its 200-day moving average price is $26.89. The company has a debt-to-equity ratio of 3.03, a current ratio of 1.02 and a quick ratio of 1.02.

DraftKings (NASDAQ:DKNG - Get Free Report) last posted 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 business had revenue of $1.65 billion for the quarter, compared to analyst estimates of $1.63 billion. During the same quarter in the prior year, the firm earned ($0.07) earnings per share. The company's revenue for the quarter was up 16.8% on a year-over-year basis. As a group, equities research analysts anticipate that DraftKings Inc. will post 0.6 EPS for the current year.

DraftKings Company 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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