Eminence Capital LP Has $234.68 Million Stake in DraftKings Inc. $DKNG

Key Points

• Eminence Capital increased its position in DraftKings by 31.9% in Q3 and now owns 6,274,863 shares—about $234.68 million or roughly 1.26% of the company, making DKNG its 10th-largest holding.
• Director Harry Sloan bought 100,000 shares at $21.85 (a 39.96% increase in his ownership), while insiders collectively sold 547,345 shares (~$14.11 million) over the past three months but still own 51.19% of the company.
• Analysts maintain a consensus rating of “Moderate Buy” on DraftKings with an average price target of $37.19 (25 Buys, 4 Holds, 2 Sells).

Eminence Capital LP increased its stake in shares of DraftKings Inc. (NASDAQ:DKNG - Free Report) by 31.9% during the 3rd quarter, according to the company in its most recent filing with the SEC. The fund owned 6,274,863 shares of the company's stock after purchasing an additional 1,517,413 shares during the quarter. DraftKings accounts for 2.8% of Eminence Capital LP's holdings, making the stock its 10th biggest holding. Eminence Capital LP owned approximately 1.26% of DraftKings worth $234,680,000 as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors also recently bought and sold shares of the stock. Ameriflex Group Inc. boosted its stake in DraftKings by 100.0% during the third quarter. Ameriflex Group Inc. now owns 810 shares of the company's stock worth $30,000 after buying an additional 405 shares during the period. Root Financial Partners LLC bought a new position in DraftKings during the third quarter valued at $33,000. AlphaQuest LLC purchased a new stake in shares of DraftKings in the third quarter valued at $41,000. TD Private Client Wealth LLC lifted its holdings in shares of DraftKings by 45.6% in the 3rd quarter. TD Private Client Wealth LLC now owns 1,165 shares of the company's stock worth $44,000 after acquiring an additional 365 shares during the last quarter. Finally, Delos Wealth Advisors LLC bought a new stake in shares of DraftKings in the 2nd quarter worth about $47,000. Hedge funds and other institutional investors own 37.70% of the company's stock.

Insider Activity

In other DraftKings news, Director Harry Sloan bought 100,000 shares of the company's stock in a transaction that occurred on Tuesday, February 17th. The shares were purchased at an average cost of $21.85 per share, for a total transaction of $2,185,000.00. Following the purchase, the director directly owned 350,219 shares in the company, valued at $7,652,285.15. This represents a 39.96% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider R Stanton Dodge sold 52,777 shares of the stock in a transaction dated Tuesday, January 20th. The shares were sold at an average price of $32.01, for a total value of $1,689,391.77. Following the completion of the sale, the insider owned 500,000 shares of the company's stock, valued at approximately $16,005,000. This trade represents a 9.55% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 547,345 shares of company stock valued at $14,111,660 over the last three months. Company insiders own 51.19% of the company's stock.

DraftKings Stock Up 1.2%

Shares of DraftKings stock opened at $25.87 on Friday. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 2.91. The company has a market cap of $12.75 billion, a P/E ratio of -646.75, a PEG ratio of 1.06 and a beta of 1.67. The firm's 50 day moving average price is $27.88 and its 200-day moving average price is $33.25. DraftKings Inc. has a 52-week low of $21.01 and a 52-week high of $48.78.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on DKNG. Benchmark reiterated a "buy" rating on shares of DraftKings in a report on Tuesday, March 3rd. Barclays restated an "overweight" rating on shares of DraftKings in a research report on Tuesday, March 3rd. Texas Capital upgraded DraftKings to a "hold" rating in a report on Thursday, January 8th. Wells Fargo & Company reissued an "overweight" rating on shares of DraftKings in a research note on Tuesday, March 3rd. Finally, The Goldman Sachs Group cut their price objective on DraftKings from $54.00 to $31.00 and set a "buy" rating on the stock in a research report on Tuesday, February 17th. Twenty-five research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $37.19.

About DraftKings

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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