Eminence Capital LP Has $171.96 Million Stock Holdings in DraftKings Inc. $DKNG

Key Points

• Eminence Capital LP significantly increased its stake in DraftKings by 195.2%, owning over 5 million shares as of the first quarter, making the stock the firm's 11th largest position.
• Company insiders sold a total of 816,662 shares of DraftKings in the last three months, indicating decreased ownership among some executives.
• DraftKings reported a revenue of $1.51 billion for the quarter, surpassing analysts' expectations and representing a 36.9% increase year-over-year.

Eminence Capital LP grew its holdings in DraftKings Inc. (NASDAQ:DKNG - Free Report) by 195.2% during the 1st quarter, according to the company in its most recent disclosure with the SEC. The fund owned 5,178,083 shares of the company's stock after purchasing an additional 3,423,909 shares during the quarter. DraftKings comprises 2.9% of Eminence Capital LP's portfolio, making the stock its 11th biggest holding. Eminence Capital LP owned approximately 0.59% of DraftKings worth $171,964,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently made changes to their positions in the business. Raiffeisen Bank International AG bought a new stake in shares of DraftKings in the fourth quarter valued at about $25,000. FNY Investment Advisers LLC bought a new stake in shares of DraftKings in the first quarter valued at about $26,000. Smallwood Wealth Investment Management LLC bought a new stake in shares of DraftKings in the first quarter valued at about $27,000. Point72 Asia Singapore Pte. Ltd. bought a new stake in shares of DraftKings in the fourth quarter valued at about $28,000. Finally, GPS Wealth Strategies Group LLC lifted its stake in shares of DraftKings by 197.9% in 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 during the period. 37.70% of the stock is owned by institutional investors and hedge funds.

DraftKings Price Performance

Shares of NASDAQ:DKNG traded down $0.24 during trading on Monday, reaching $46.32. The stock had a trading volume of 7,793,754 shares, compared to its average volume of 10,134,890. DraftKings Inc. has a 52 week low of $29.64 and a 52 week high of $53.61. The business's 50-day moving average price is $44.63 and its 200 day moving average price is $39.58. The company has a debt-to-equity ratio of 1.82, a current ratio of 1.34 and a quick ratio of 1.34. The stock has a market capitalization of $41.20 billion, a PE ratio of -71.26, a P/E/G ratio of 1.10 and a beta of 1.73.

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

Analysts Set New Price Targets

A number of research analysts have commented on the stock. Morgan Stanley restated an "overweight" rating and set a $52.00 price target (up previously from $51.00) on shares of DraftKings in a research note on Friday, July 11th. Truist Financial raised their price target on shares of DraftKings from $50.00 to $55.00 and gave the stock a "buy" rating in a research note on Wednesday, July 16th. JMP Securities cut their price target on shares of DraftKings from $54.00 to $50.00 and set a "market outperform" rating for the company in a research note on Thursday, June 5th. JPMorgan Chase & Co. assumed coverage on shares of DraftKings in a research note on Monday, June 23rd. They set an "overweight" rating and a $50.00 price target for the company. Finally, Jefferies Financial Group set a $54.00 price target on shares of DraftKings in a research note on Thursday, August 21st. Twenty-four research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $54.37.

Insiders Place Their Bets

In related news, Director Ryan R. Moore sold 76,390 shares of the firm's stock in a transaction that occurred on Thursday, August 21st. The shares were sold at an average price of $45.92, for a total value of $3,507,828.80. Following the completion of the sale, the director owned 402 shares of the company's stock, valued at $18,459.84. This trade represents a 99.48% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Matthew Kalish sold 210,000 shares of the firm'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 directly owned 4,190,233 shares of the company's stock, valued at approximately $179,760,995.70. This represents a 4.77% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 816,662 shares of company stock valued at $35,460,274 over the last quarter. Company insiders own 47.08% of the company's stock.

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.