Elevate Capital Advisors LLC Makes New $662,000 Investment in DraftKings Inc. $DKNG

Key Points

• Elevate Capital Advisors LLC has made a new investment of approximately $662,000 in DraftKings Inc., acquiring 15,430 shares during the second quarter.
• DraftKings reported earnings of $0.30 per share in its latest quarterly results, exceeding estimates and showcasing a 36.9% year-over-year revenue increase to $1.51 billion.
• Insider selling was noted, with DraftKings CFO and another insider collectively selling over 658,000 shares valued at approximately $29 million in the last quarter.

Elevate Capital Advisors LLC purchased a new position in shares of DraftKings Inc. (NASDAQ:DKNG - Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 15,430 shares of the company's stock, valued at approximately $662,000.

Several other large investors have also recently made changes to their positions in DKNG. GAMMA Investing LLC raised its stake in shares of DraftKings by 5,118.8% during the first quarter. GAMMA Investing LLC now owns 48,952 shares of the company's stock worth $1,626,000 after acquiring an additional 48,014 shares in the last quarter. Rhumbline Advisers raised its stake in shares of DraftKings by 0.4% during the first quarter. Rhumbline Advisers now owns 586,722 shares of the company's stock worth $19,485,000 after acquiring an additional 2,177 shares in the last quarter. Merit Financial Group LLC purchased a new position in shares of DraftKings during the first quarter worth approximately $1,006,000. RFG Advisory LLC raised its stake in shares of DraftKings by 37.1% during the first quarter. RFG Advisory LLC now owns 8,944 shares of the company's stock worth $297,000 after acquiring an additional 2,420 shares in the last quarter. Finally, Stablepoint Partners LLC grew its holdings in shares of DraftKings by 7.5% in the first quarter. Stablepoint Partners LLC now owns 7,207 shares of the company's stock worth $239,000 after purchasing an additional 501 shares during the last quarter. 37.70% of the stock is owned by hedge funds and other institutional investors.

DraftKings Stock Performance

NASDAQ:DKNG opened at $35.37 on Friday. The stock has a market cap of $17.56 billion, a P/E ratio of -54.42, a price-to-earnings-growth ratio of 0.91 and a beta of 1.99. The firm's fifty day simple moving average is $44.25 and its 200 day simple moving average is $39.79. DraftKings Inc. has a twelve month low of $29.64 and a twelve month high of $53.61. The company has a quick ratio of 1.34, a current ratio of 1.34 and a debt-to-equity ratio of 1.82.

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

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on DKNG. JMP Securities cut their target price on shares of DraftKings from $54.00 to $51.00 and set a "market outperform" rating on the stock in a report on Wednesday. Morgan Stanley restated an "overweight" rating and issued a $52.00 target price (up previously from $51.00) on shares of DraftKings in a report on Friday, July 11th. Jefferies Financial Group set a $54.00 target price on shares of DraftKings in a report on Thursday, August 21st. Northland Capmk cut shares of DraftKings from a "strong-buy" rating to a "strong sell" rating in a report on Wednesday. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of DraftKings in a report on Saturday, September 27th. Twenty-six analysts have rated the stock with a Buy rating, one has assigned a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $53.89.

Insiders Place Their Bets

In other DraftKings news, CFO Alan Wayne Ellingson sold 44,693 shares of the firm's stock in a transaction on 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 completion of the transaction, the chief financial officer owned 128,131 shares of the company's stock, valued at approximately $5,753,081.90. This trade represents a 25.86% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider R Stanton Dodge sold 105,554 shares of the firm's stock in a transaction on Tuesday, September 2nd. The shares were sold at an average price of $47.37, for a total value of $5,000,092.98. Following the transaction, the insider directly owned 512,181 shares of the company's stock, valued at $24,262,013.97. This represents a 17.09% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 658,331 shares of company stock valued at $29,285,365 over the last quarter. 51.19% of the stock is owned by company insiders.

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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