DraftKings Inc. $DKNG Stake Trimmed by Hsbc Holdings PLC

Key Points

• HSBC Holdings PLC cut its DraftKings stake by 33.5% in the fourth quarter, selling 48,897 shares and leaving it with 96,942 shares valued at about $3.35 million.
• DraftKings reported Q1 revenue of $1.65 billion, up 16.8% from a year ago, but earnings of $0.20 per share came in slightly below analyst expectations of $0.22.
• Wall Street remains broadly constructive on the stock, with a Moderate Buy consensus and an average price target of $34.46, even as insiders have recently sold shares and the stock has faced mixed sentiment.

Hsbc Holdings PLC cut its position in shares of DraftKings Inc. (NASDAQ:DKNG - Free Report) by 33.5% in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 96,942 shares of the company's stock after selling 48,897 shares during the quarter. Hsbc Holdings PLC's holdings in DraftKings were worth $3,347,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently made changes to their positions in DKNG. Dagco Inc. acquired a new stake in shares of DraftKings during the fourth quarter valued at approximately $26,000. Asset Dedication LLC acquired a new position in DraftKings in the 3rd quarter worth approximately $37,000. Montag A & Associates Inc. boosted its stake in DraftKings by 82.5% in the 4th quarter. Montag A & Associates Inc. now owns 1,106 shares of the company's stock worth $38,000 after purchasing an additional 500 shares during the period. Aventura Private Wealth LLC purchased a new position in DraftKings during the 4th quarter worth approximately $39,000. Finally, SHP Wealth Management purchased a new position in DraftKings during the 4th quarter worth approximately $42,000. 37.70% of the stock is currently owned by institutional investors and hedge funds.

DraftKings Price Performance

DKNG opened at $26.48 on Friday. The stock has a market cap of $13.14 billion, a price-to-earnings ratio of 441.33 and a beta of 1.65. DraftKings Inc. has a 1 year low of $20.46 and a 1 year high of $48.78. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 3.03. The stock has a fifty day moving average price of $25.72 and a 200 day moving average price of $26.48.

DraftKings (NASDAQ:DKNG - Get Free Report) last issued its earnings results on Friday, May 8th. The company reported $0.20 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 quarter last year, the firm earned ($0.07) EPS. The business's revenue for the quarter was up 16.8% compared to the same quarter last year. Analysts forecast that DraftKings Inc. will post 0.6 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of analysts have recently issued reports on the company. Northland Securities set a $27.00 target price on DraftKings in a report on Monday, May 11th. JPMorgan Chase & Co. lowered their price target on DraftKings from $32.00 to $31.00 and set an "overweight" rating on the stock in a report on Thursday, April 16th. Roth Capital raised DraftKings from a "sell" rating to a "buy" rating in a research report on Friday, April 24th. Zacks Research raised DraftKings from a "strong sell" rating to a "hold" rating in a research note on Wednesday, May 20th. Finally, TD Cowen raised their price objective on DraftKings from $30.00 to $35.00 and gave the stock a "buy" rating in a research report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, eight have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $34.46.

Insider Activity at DraftKings

In related news, Director Woodrow Levin sold 34,234 shares of the firm's stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $25.71, for a total transaction of $880,156.14. Following the transaction, the director owned 29,820 shares of the company's stock, valued at approximately $766,672.20. This trade represents a 53.45% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider R Stanton Dodge sold 62,500 shares of DraftKings stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $29.68, for a total transaction of $1,855,000.00. Following the completion of the sale, the insider owned 556,258 shares of the company's stock, valued at $16,509,737.44. This trade represents a 10.10% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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. 47.18% of the stock is currently owned by company insiders.

Trending Headlines about DraftKings

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: TD Cowen raised its price target on DraftKings to $35 from $30 and reiterated a Buy rating, signaling confidence in roughly 32% upside from current levels. Article Title
• Positive Sentiment: DraftKings announced it will launch its online sportsbook and casino in Alberta on July 13, expanding its North American footprint into its second Canadian province and 34th jurisdiction overall. Article Title
• Positive Sentiment: Michael Burry disclosed a stake in DraftKings, saying he bought shares around $26 and betting that competition from prediction markets will face tighter regulation over time, which helped fuel interest in beaten-down sportsbook stocks. Article Title
• Positive Sentiment: Analysts remain broadly constructive, with a consensus price target near $34.30 and the majority of ratings still at Buy, suggesting Wall Street sees meaningful upside if sentiment improves. Article Title
• Neutral Sentiment: Recent commentary highlighted conflicting analyst views and technical pressure, reflecting ongoing uncertainty about whether DKNG can stabilize after a sharp multi-month pullback. Article Title
• Negative Sentiment: A recent Yahoo Finance article warned of “3 Reasons to Sell DKNG”, reinforcing bearish sentiment after a difficult six months for the stock. Article Title
• Negative Sentiment: Another report noted DraftKings declined even as the broader market rose, underscoring investor concern that the stock remains vulnerable to sector competition and momentum weakness. Article Title

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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