DraftKings Inc. $DKNG Stake Cut by Hodges Capital Management Inc.

Key Points

• Hodges Capital Management Inc. reduced its stake in DraftKings by 25.5%, selling 184,767 shares to end with 540,642 shares, which constitutes about 1.8% of its total investment portfolio.
• DraftKings reported $1.51 billion in revenue for the last quarter, exceeding estimates, and its earnings per share came in at $0.30, which surpassed consensus expectations.
• Several institutional investors, including T. Rowe Price and Baillie Gifford & Co., increased their holdings in DraftKings during the first quarter, highlighting continued interest in the company's stock.

Hodges Capital Management Inc. reduced its position in DraftKings Inc. (NASDAQ:DKNG - Free Report) by 25.5% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 540,642 shares of the company's stock after selling 184,767 shares during the quarter. DraftKings comprises approximately 1.8% of Hodges Capital Management Inc.'s investment portfolio, making the stock its 9th biggest holding. Hodges Capital Management Inc. owned about 0.06% of DraftKings worth $17,955,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also bought and sold shares of the company. T. Rowe Price Investment Management Inc. grew its holdings in 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 last quarter. Baillie Gifford & Co. grew its holdings in shares of DraftKings by 26.5% during the first quarter. Baillie Gifford & Co. now owns 8,390,236 shares of the company's stock valued at $278,640,000 after buying an additional 1,756,778 shares during the last quarter. Massachusetts Financial Services Co. MA grew its holdings in shares of DraftKings by 4.4% during the first quarter. Massachusetts Financial Services Co. MA now owns 7,098,641 shares of the company's stock valued at $235,746,000 after buying an additional 301,134 shares during the last quarter. Eminence Capital LP grew its holdings in shares of DraftKings by 195.2% during the first quarter. Eminence Capital LP now owns 5,178,083 shares of the company's stock valued at $171,964,000 after buying an additional 3,423,909 shares during the last quarter. Finally, Whale Rock Capital Management LLC grew its holdings in shares of DraftKings by 9.2% during the fourth quarter. Whale Rock Capital Management LLC now owns 4,971,886 shares of the company's stock valued at $184,954,000 after buying an additional 416,881 shares during the last quarter. 37.70% of the stock is owned by hedge funds and other institutional investors.

DraftKings Price Performance

Shares of DKNG opened at $45.87 on Friday. The business's 50-day moving average is $44.97 and its two-hundred day moving average is $39.68. The company has a market capitalization of $22.77 billion, a P/E ratio of -70.57, a P/E/G ratio of 1.08 and a beta of 1.73. 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.

DraftKings (NASDAQ:DKNG - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The company reported $0.30 earnings per share for the quarter, topping the consensus estimate of $0.16 by $0.14. The company had revenue of $1.51 billion for the quarter, compared to the consensus estimate of $1.39 billion. DraftKings had a negative return on equity of 30.06% and a negative net margin of 5.63%.The firm's revenue for the quarter was up 36.9% compared to the same quarter last year. During the same period last year, the firm earned $0.12 EPS. DraftKings has set its FY 2025 guidance at EPS. Research analysts predict that DraftKings Inc. will post 0.64 earnings per share for the current year.

Insider Activity at DraftKings

In other DraftKings news, Director Ryan R. Moore sold 76,390 shares of the stock in a transaction dated Thursday, August 21st. The stock was sold at an average price of $45.92, for a total transaction of $3,507,828.80. Following the sale, the director directly owned 402 shares of the company's stock, valued at approximately $18,459.84. This trade represents a 99.48% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Alan Wayne Ellingson sold 44,693 shares of the stock in a transaction dated 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 sale, the chief financial officer directly owned 128,131 shares in the company, valued at approximately $5,753,081.90. The trade was a 25.86% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 816,662 shares of company stock worth $35,460,274 in the last three months. Company insiders own 51.19% of the company's stock.

Analyst Ratings Changes

A number of brokerages have recently weighed in on DKNG. Wall Street Zen lowered shares of DraftKings from a "buy" rating to a "hold" rating in a report on Saturday, August 30th. Barclays reissued an "overweight" rating and set a $54.00 price objective (up from $51.00) on shares of DraftKings in a report on Friday, August 8th. JMP Securities dropped their price objective on shares of DraftKings from $54.00 to $50.00 and set a "market outperform" rating on the stock in a report on Thursday, June 5th. Sanford C. Bernstein began coverage on shares of DraftKings in a report on Wednesday, June 4th. They set an "outperform" rating and a $46.00 price objective on the stock. Finally, Citigroup reissued a "buy" rating on shares of DraftKings in a report on Friday, July 11th. Twenty-four research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat.com, DraftKings presently has an average rating of "Moderate Buy" and an average price target of $55.12.

DraftKings Profile

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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