Fernbridge Capital Management LP Makes New $10.47 Million Investment in DraftKings Inc. $DKNG

Key Points

• Fernbridge Capital Management LP purchased a new stake of 279,860 shares in DraftKings valued at approximately $10.47 million, making it the firm's 24th largest holding and representing 0.06% of DraftKings outstanding shares.
• Insider activity was notable: director Harry Sloan bought 100,000 shares at $21.85 (≈$2.19M) while Paul Liberman sold 484,417 shares at $25.16 (≈$12.19M); insiders have sold 547,345 shares in the last 90 days and now own 51.19% of the company.
• Analysts hold a consensus rating of "Moderate Buy" with an average price target of $37.19; recent analyst moves include BMO raising its target to $50 and Goldman Sachs cutting theirs to $31.

Fernbridge Capital Management LP acquired a new stake in shares of DraftKings Inc. (NASDAQ:DKNG - Free Report) during the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 279,860 shares of the company's stock, valued at approximately $10,467,000. DraftKings accounts for 0.5% of Fernbridge Capital Management LP's investment portfolio, making the stock its 24th largest holding. Fernbridge Capital Management LP owned 0.06% of DraftKings as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors have also modified their holdings of the stock. Ameriflex Group Inc. increased its position in shares of DraftKings by 100.0% during the 3rd quarter. Ameriflex Group Inc. now owns 810 shares of the company's stock valued at $30,000 after purchasing an additional 405 shares during the last quarter. Root Financial Partners LLC purchased a new stake in DraftKings during the 3rd quarter valued at $33,000. AlphaQuest LLC bought a new stake in DraftKings in the third quarter worth $41,000. TD Private Client Wealth LLC boosted its stake in DraftKings by 45.6% during the third quarter. TD Private Client Wealth LLC now owns 1,165 shares of the company's stock worth $44,000 after buying an additional 365 shares during the period. Finally, Delos Wealth Advisors LLC purchased a new position in DraftKings during the second quarter worth $47,000. 37.70% of the stock is owned by institutional investors.

Analysts Set New Price Targets

DKNG has been the topic of several recent analyst reports. BMO Capital Markets increased their target price on shares of DraftKings from $42.00 to $50.00 and gave the company an "outperform" rating in a research note on Tuesday, March 3rd. The Goldman Sachs Group dropped their price target on shares of DraftKings from $54.00 to $31.00 and set a "buy" rating for the company in a research note on Tuesday, February 17th. Sanford C. Bernstein reiterated an "outperform" rating and set a $30.00 price target on shares of DraftKings in a report on Thursday, March 5th. Deutsche Bank Aktiengesellschaft set a $26.00 price objective on shares of DraftKings in a research report on Tuesday, February 17th. Finally, JPMorgan Chase & Co. decreased their price objective on shares of DraftKings from $41.00 to $32.00 and set an "overweight" rating for the company in a research note on Tuesday, February 17th. Twenty-five investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $37.19.

Insider Activity at DraftKings

In related news, Director Harry Sloan purchased 100,000 shares of the firm's stock in a transaction dated Tuesday, February 17th. The stock was purchased at an average price of $21.85 per share, with a total value of $2,185,000.00. Following the completion of the purchase, the director owned 350,219 shares of the company's stock, valued at approximately $7,652,285.15. The trade was a 39.96% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Paul Liberman sold 484,417 shares of the business's stock in a transaction that occurred on Wednesday, March 11th. The shares were sold at an average price of $25.16, for a total value of $12,187,931.72. Following the completion of the sale, the insider owned 213,597 shares of the company's stock, valued at $5,374,100.52. The trade was a 69.40% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 547,345 shares of company stock worth $14,111,660. Corporate insiders own 51.19% of the company's stock.

DraftKings Stock Up 1.2%

NASDAQ:DKNG opened at $25.87 on Friday. The company has a market cap of $12.75 billion, a price-to-earnings ratio of -646.75, a price-to-earnings-growth ratio of 1.05 and a beta of 1.67. DraftKings Inc. has a twelve month low of $21.01 and a twelve month high of $48.78. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 2.91. The stock has a fifty day simple moving average of $27.88 and a 200-day simple moving average of $33.35.

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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