Gateway Investment Advisers LLC Grows Stock Position in DraftKings Inc. $DKNG

Key Points

• Gateway Investment Advisers LLC increased its DraftKings stake by 215.6% in the fourth quarter, ending with 82,131 shares valued at about $2.83 million.
• DraftKings reported Q1 revenue of $1.65 billion, topping estimates and rising 16.8% year over year, while also swinging to a $21.1 million profit from a loss a year earlier.
• Despite the strong revenue and profit improvement, DraftKings missed adjusted EPS estimates and reiterated full-year revenue guidance of roughly $6.5 billion to $6.9 billion, which was roughly in line with expectations.

Gateway Investment Advisers LLC lifted its stake in DraftKings Inc. (NASDAQ:DKNG - Free Report) by 215.6% during the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 82,131 shares of the company's stock after buying an additional 56,104 shares during the period. Gateway Investment Advisers LLC's holdings in DraftKings were worth $2,830,000 as of its most recent SEC filing.

Several other large investors have also recently modified their holdings of the stock. IHT Wealth Management LLC increased its holdings in shares of DraftKings by 4.1% in the second quarter. IHT Wealth Management LLC now owns 6,271 shares of the company's stock worth $269,000 after buying an additional 248 shares during the period. Orion Porfolio Solutions LLC increased its holdings in shares of DraftKings by 3.1% in the third quarter. Orion Porfolio Solutions LLC now owns 10,608 shares of the company's stock worth $397,000 after buying an additional 321 shares during the period. Geneos Wealth Management Inc. increased its holdings in shares of DraftKings by 7.3% in the third quarter. Geneos Wealth Management Inc. now owns 4,793 shares of the company's stock worth $179,000 after buying an additional 328 shares during the period. Huntleigh Advisors Inc. increased its holdings in shares of DraftKings by 0.8% in the third quarter. Huntleigh Advisors Inc. now owns 43,630 shares of the company's stock worth $1,632,000 after buying an additional 363 shares during the period. Finally, TD Private Client Wealth LLC increased its holdings in shares of DraftKings by 45.6% in 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. Hedge funds and other institutional investors own 37.70% of the company's stock.

More DraftKings News

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: Revenue for Q1 came in at $1.65 billion, beating Wall Street estimates and rising about 17% year over year, helped by strong betting margins and continued customer engagement. DraftKings shares gain as Q1 revenue tops estimates on strong betting margins
• Positive Sentiment: DraftKings swung to a profit of $21.1 million, a notable improvement from a loss a year ago, suggesting operating leverage is starting to show through. DraftKings Swings to First-Quarter Profit on Better Sportsbook Margins
• Positive Sentiment: BTIG raised its price target on DraftKings to $30 from $28 and kept a buy rating, signaling continued analyst confidence after the earnings release. Benzinga reference
• Neutral Sentiment: Adjusted earnings of $0.20 per share missed estimates by a small margin, which may limit upside until investors see more consistent EPS execution. DraftKings Reports Strong Start To 2026 With Q1 Double Beat
• Neutral Sentiment: The company reiterated full-year revenue guidance of roughly $6.5 billion to $6.9 billion, which was broadly in line with expectations and suggests management remains cautious but stable on the outlook. DraftKings beats profit estimates but guides below views
• Negative Sentiment: Some investors may focus on the earnings miss and the stock’s below-consensus guidance, which could temper enthusiasm after the strong revenue beat. DraftKings (DKNG) Q1 Earnings Lag Estimates

DraftKings Stock Up 1.2%

NASDAQ DKNG opened at $25.52 on Friday. The company has a debt-to-equity ratio of 2.91, a current ratio of 1.03 and a quick ratio of 1.03. The stock has a market capitalization of $12.65 billion, a PE ratio of 425.33, a PEG ratio of 1.19 and a beta of 1.67. DraftKings Inc. has a 1 year low of $20.46 and a 1 year high of $48.78. The business's 50-day moving average is $23.56 and its 200 day moving average is $28.48.

DraftKings (NASDAQ:DKNG - Get Free Report) last posted its earnings results on Thursday, May 7th. The company reported $0.20 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.22 by ($0.02). The business had revenue of $1.65 billion during the quarter, compared to the consensus estimate of $1.63 billion. DraftKings had a return on equity of 12.71% and a net margin of 0.93%.The firm's revenue for the quarter was up 16.8% compared to the same quarter last year. During the same period in the previous year, the business earned ($0.07) earnings per share. Sell-side analysts forecast that DraftKings Inc. will post 0.55 earnings per share for the current year.

Wall Street Analyst Weigh In

Several research analysts have recently commented on DKNG shares. Argus downgraded DraftKings from a "buy" rating to a "hold" rating in a report on Tuesday, March 17th. JPMorgan Chase & Co. cut their target price on DraftKings from $32.00 to $31.00 and set an "overweight" rating on the stock in a research note on Thursday, April 16th. Benchmark reissued a "buy" rating on shares of DraftKings in a research note on Tuesday, March 3rd. Wedbush assumed coverage on DraftKings in a research note on Friday, April 24th. They issued an "outperform" rating on the stock. Finally, Sanford C. Bernstein reissued an "outperform" rating and issued a $30.00 target price on shares of DraftKings in a research note on Thursday, March 5th. Twenty-seven equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, DraftKings currently has a consensus rating of "Moderate Buy" and a consensus price target of $34.66.

Insider Transactions at DraftKings

In other DraftKings news, CAO Erik Bradbury sold 2,883 shares of DraftKings stock in a transaction that occurred on Tuesday, March 3rd. The stock was sold at an average price of $24.56, for a total transaction of $70,806.48. Following the sale, the chief accounting officer directly owned 38,168 shares of the company's stock, valued at approximately $937,406.08. The trade was a 7.02% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Paul Liberman sold 484,417 shares of DraftKings 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 sale, the insider directly owned 213,597 shares in the company, valued at approximately $5,374,100.52. The trade was a 69.40% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 496,718 shares of company stock valued at $12,477,308. Insiders own 47.18% of the company's stock.

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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