Empirical Finance LLC Buys New Stake in DraftKings Inc. (NASDAQ:DKNG)

Key Points

• Empirical Finance LLC has initiated a new investment in DraftKings Inc., acquiring 8,475 shares valued at approximately $281,000 in the 1st quarter.
• The company has a current market cap of $38.77 billion and recently reported significant insider activity, including a Director selling over 3,000 shares.
• Analysts from several firms have revised their price targets for DraftKings stock, with a consensus average target of $54.38 and a majority rating it as a "Moderate Buy."

Empirical Finance LLC bought a new stake in shares of DraftKings Inc. (NASDAQ:DKNG - Free Report) in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm bought 8,475 shares of the company's stock, valued at approximately $281,000.

Several other large investors also recently added to or reduced their stakes in the company. Raiffeisen Bank International AG purchased a new position in DraftKings in the 4th quarter worth approximately $25,000. FNY Investment Advisers LLC bought a new position in DraftKings during the 1st quarter valued at approximately $26,000. Smallwood Wealth Investment Management LLC bought a new stake in DraftKings in the first quarter worth $27,000. Point72 Asia Singapore Pte. Ltd. bought a new stake in DraftKings in the fourth quarter worth $28,000. Finally, GPS Wealth Strategies Group LLC lifted its holdings in shares of 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 purchasing an additional 564 shares in the last quarter. Hedge funds and other institutional investors own 37.70% of the company's stock.

Analyst Ratings Changes

A number of research analysts have weighed in on the company. Citigroup reissued a "buy" rating on shares of DraftKings in a report on Friday, July 11th. Guggenheim cut their target price on DraftKings from $61.00 to $60.00 and set a "buy" rating for the company in a research report on Monday, May 12th. Benchmark reissued a "buy" rating and set a $50.00 price target (up from $45.00) on shares of DraftKings in a research note on Tuesday, July 15th. BMO Capital Markets reaffirmed an "outperform" rating and issued a $65.00 price objective on shares of DraftKings in a research note on Thursday, April 24th. Finally, Susquehanna raised their price target on DraftKings from $52.00 to $60.00 and gave the stock a "positive" rating in a research note on Friday, July 25th. One analyst has rated the stock with a hold rating and twenty-seven have given a buy rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $54.38.

DraftKings Price Performance

NASDAQ:DKNG traded down $0.71 during trading hours on Thursday, hitting $45.04. 11,802,111 shares of the stock were exchanged, compared to its average volume of 7,652,670. DraftKings Inc. has a 52-week low of $28.69 and a 52-week high of $53.61. The firm's fifty day moving average price is $40.38 and its 200 day moving average price is $39.23. The company has a current ratio of 1.20, a quick ratio of 1.20 and a debt-to-equity ratio of 2.11. The company has a market cap of $40.05 billion, a P/E ratio of -54.26, a P/E/G ratio of 1.54 and a beta of 1.67.

Insider Buying and Selling

In related news, Director Jocelyn Moore sold 3,136 shares of the company's stock in a transaction that occurred on Friday, May 30th. The stock was sold at an average price of $35.28, for a total value of $110,638.08. Following the transaction, the director directly owned 5,947 shares in the company, valued at approximately $209,810.16. This represents a 34.53% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Alan Wayne Ellingson sold 6,829 shares of the company's stock in a transaction that occurred on Friday, May 16th. The shares were sold at an average price of $36.77, for a total value of $251,102.33. Following the completion of the transaction, the chief financial officer owned 171,268 shares in the company, valued at $6,297,524.36. This represents a 3.83% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 589,404 shares of company stock valued at $22,639,746 over the last ninety days. 51.19% of the stock is currently 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.