DraftKings Inc. (NASDAQ:DKNG) Holdings Lowered by ARK Investment Management LLC

Key Points

• ARK Investment Management LLC has reduced its stake in DraftKings Inc. by 12.7%, owning approximately 4.83 million shares after selling 704,035 shares in the first quarter.
• Insiders, including Matthew Kalish, have sold a total of 589,404 shares valued at $22.6 million over the last 90 days, decreasing their collective shares to 51.19% ownership.
• Despite the recent stake reduction, analysts hold a generally positive outlook with a consensus target price of $54.38 for DraftKings, including ratings of "overweight" and "buy" from several brokerages.

ARK Investment Management LLC reduced its stake in DraftKings Inc. (NASDAQ:DKNG - Free Report) by 12.7% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 4,830,133 shares of the company's stock after selling 704,035 shares during the period. DraftKings accounts for approximately 1.6% of ARK Investment Management LLC's holdings, making the stock its 20th biggest position. ARK Investment Management LLC owned approximately 0.55% of DraftKings worth $160,409,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also made changes to their positions in DKNG. Raiffeisen Bank International AG acquired a new stake in DraftKings in the fourth quarter worth approximately $25,000. FNY Investment Advisers LLC bought a new stake in shares of DraftKings in the 1st quarter worth $26,000. Smallwood Wealth Investment Management LLC acquired a new stake in shares of DraftKings in the first quarter valued at $27,000. Point72 Asia Singapore Pte. Ltd. bought a new position in DraftKings during the fourth quarter valued at about $28,000. Finally, GPS Wealth Strategies Group LLC boosted its stake in DraftKings by 197.9% during the first quarter. GPS Wealth Strategies Group LLC now owns 849 shares of the company's stock valued at $28,000 after buying an additional 564 shares in the last quarter. 37.70% of the stock is currently owned by institutional investors.

Insider Transactions at DraftKings

In other news, insider Matthew Kalish sold 210,000 shares of DraftKings stock in a transaction dated Tuesday, May 13th. The stock was sold at an average price of $37.83, for a total transaction of $7,944,300.00. Following the completion of the sale, the insider directly owned 4,155,130 shares in the company, valued at $157,188,567.90. The trade was a 4.81% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider R Stanton Dodge sold 105,554 shares of the stock in a transaction that occurred on Friday, July 18th. The stock was sold at an average price of $43.53, for a total value of $4,594,765.62. Following the completion of the transaction, the insider owned 500,000 shares in the company, valued at $21,765,000. This represents a 17.43% decrease in their position. The disclosure for this sale can be found here. Insiders sold 589,404 shares of company stock valued at $22,639,746 over the last 90 days. Company insiders own 51.19% of the company's stock.

Analyst Upgrades and Downgrades

Several brokerages have commented on DKNG. Barclays set a $51.00 price target on shares of DraftKings and gave the stock an "overweight" rating in a research report on Friday, July 18th. Cfra Research upgraded shares of DraftKings to a "moderate buy" rating in a report on Monday, April 14th. Stifel Nicolaus cut their target price on shares of DraftKings from $53.00 to $51.00 and set a "buy" rating for the company in a research note on Wednesday, July 16th. Jefferies Financial Group dropped their price target on DraftKings from $60.00 to $53.00 and set a "buy" rating on the stock in a report on Thursday, July 3rd. Finally, Northland Securities set a $50.00 price objective on DraftKings in a research note on Friday, April 25th. One analyst has rated the stock with a hold rating and twenty-seven have given a buy rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $54.38.

DraftKings Price Performance

DKNG opened at $44.86 on Friday. The stock has a fifty day moving average price of $39.68 and a 200 day moving average price of $39.07. The company has a current ratio of 1.20, a quick ratio of 1.20 and a debt-to-equity ratio of 2.11. DraftKings Inc. has a 1 year low of $28.69 and a 1 year high of $53.61. The stock has a market cap of $39.89 billion, a price-to-earnings ratio of -54.05, a PEG ratio of 1.48 and a beta of 1.67.

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.

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