Neuberger Berman Group LLC Grows Stock Holdings in DraftKings Inc. (NASDAQ:DKNG)

Key Points

• Neuberger Berman Group LLC increased its stake in DraftKings Inc. by 53.2%, owning approximately 4 million shares worth $133 million after acquiring over 1.3 million shares in the first quarter.
• DraftKings recently reported $1.51 billion in revenue for the most recent quarter, exceeding analyst expectations and marking a 36.9% year-over-year increase.
• Wall Street analysts have expressed positive sentiment towards DraftKings, with the stock receiving a consensus rating of "Moderate Buy" and an average price target of $54.50.

Neuberger Berman Group LLC raised its position in DraftKings Inc. (NASDAQ:DKNG - Free Report) by 53.2% in the 1st quarter, according to its most recent filing with the SEC. The firm owned 4,010,737 shares of the company's stock after acquiring an additional 1,393,063 shares during the period. Neuberger Berman Group LLC owned approximately 0.45% of DraftKings worth $133,196,000 at the end of the most recent reporting period.

Several other hedge funds also recently made changes to their positions in DKNG. Mariner LLC lifted its stake in shares of DraftKings by 23.6% in the 4th quarter. Mariner LLC now owns 241,269 shares of the company's stock worth $8,975,000 after acquiring an additional 46,044 shares during the period. Guggenheim Capital LLC lifted its stake in shares of DraftKings by 11.3% in the fourth quarter. Guggenheim Capital LLC now owns 13,459 shares of the company's stock valued at $501,000 after purchasing an additional 1,364 shares during the period. NewEdge Advisors LLC lifted its stake in shares of DraftKings by 100.3% in the fourth quarter. NewEdge Advisors LLC now owns 53,211 shares of the company's stock valued at $1,979,000 after purchasing an additional 26,639 shares during the period. Canada Pension Plan Investment Board lifted its stake in shares of DraftKings by 21.4% in the fourth quarter. Canada Pension Plan Investment Board now owns 743,587 shares of the company's stock valued at $27,661,000 after purchasing an additional 130,922 shares during the period. Finally, Dimensional Fund Advisors LP lifted its stake in shares of DraftKings by 6.2% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,105,643 shares of the company's stock valued at $41,129,000 after purchasing an additional 64,088 shares during the period. Institutional investors and hedge funds own 37.70% of the company's stock.

DraftKings Trading Up 2.9%

DraftKings stock traded up $1.27 during trading on Friday, reaching $44.94. The company had a trading volume of 9,569,503 shares, compared to its average volume of 9,671,005. DraftKings Inc. has a 12-month low of $29.64 and a 12-month high of $53.61. The stock's 50 day moving average price is $42.39 and its two-hundred day moving average price is $39.50. The firm has a market capitalization of $39.97 billion, a price-to-earnings ratio of -69.14, a PEG ratio of 1.04 and a beta of 1.70. 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 (NASDAQ:DKNG - Get Free Report) last released its earnings results on Thursday, August 7th. The company reported $0.30 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.16 by $0.14. DraftKings had a negative net margin of 5.63% and a negative return on equity of 30.06%. The firm had revenue of $1.51 billion during the quarter, compared to the consensus estimate of $1.39 billion. During the same period in the previous year, the firm earned $0.12 earnings per share. DraftKings's revenue was up 36.9% compared to the same quarter last year. As a group, equities analysts expect that DraftKings Inc. will post 0.64 earnings per share for the current fiscal year.

Insider Activity at DraftKings

In related news, CFO Alan Wayne Ellingson sold 5,725 shares of the business's stock in a transaction that occurred on Friday, August 15th. The shares were sold at an average price of $43.53, for a total value of $249,209.25. Following the completion of the sale, the chief financial officer directly owned 172,824 shares in the company, valued at approximately $7,523,028.72. The trade was a 3.21% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Matthew Kalish sold 210,000 shares of the business's stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $42.90, for a total transaction of $9,009,000.00. Following the completion of the sale, the insider owned 4,190,233 shares of the company's stock, valued at approximately $179,760,995.70. The trade was a 4.77% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 645,938 shares of company stock valued at $26,823,776 in the last ninety days. 51.19% of the stock is owned by company insiders.

Analysts Set New Price Targets

Several brokerages recently commented on DKNG. Jefferies Financial Group reiterated a "buy" rating and issued a $54.00 price objective (up previously from $53.00) on shares of DraftKings in a research note on Friday, August 8th. Guggenheim lowered their price target on DraftKings from $61.00 to $60.00 and set a "buy" rating on the stock in a report on Monday, May 12th. Wall Street Zen upgraded DraftKings from a "hold" rating to a "buy" rating in a report on Saturday, August 9th. Morgan Stanley restated an "overweight" rating and issued a $52.00 price target (up previously from $51.00) on shares of DraftKings in a report on Friday, July 11th. Finally, Stifel Nicolaus lowered their price target on DraftKings from $53.00 to $51.00 and set a "buy" rating on the stock in a report on Wednesday, July 16th. Two analysts have rated the stock with a hold rating and twenty-six have assigned a buy rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $54.50.

DraftKings Company 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.