Gateway Investment Advisers LLC Sells 39,225 Shares of DraftKings Inc. $DKNG

Key Points

• Gateway Investment Advisers LLC reduced its stake in DraftKings Inc. by 60.1%, selling 39,225 shares and holding 26,048 shares valued at $1,117,000 after the transaction.
• DraftKings reported a quarterly earnings per share (EPS) of $0.30, exceeding estimates by $0.14, and had a revenue of $1.51 billion, which was significantly above the expected $1.39 billion.
• Research analysts maintain a generally positive outlook on DraftKings, with a consensus rating of "Moderate Buy" and an average price target of $55.12 from various firms.

Gateway Investment Advisers LLC decreased its holdings in DraftKings Inc. (NASDAQ:DKNG - Free Report) by 60.1% during the 2nd quarter, according to the company in its most recent disclosure with the SEC. The fund owned 26,048 shares of the company's stock after selling 39,225 shares during the quarter. Gateway Investment Advisers LLC's holdings in DraftKings were worth $1,117,000 as of its most recent SEC filing.

Other institutional investors and hedge funds also recently modified their holdings of the company. FNY Investment Advisers LLC bought a new stake in shares of DraftKings during the 1st quarter worth $26,000. Smallwood Wealth Investment Management LLC purchased a new stake in shares of DraftKings during the first quarter valued at $27,000. GPS Wealth Strategies Group LLC boosted its position in shares of DraftKings by 197.9% in the 1st 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 during the period. Bank of Jackson Hole Trust purchased a new position in DraftKings in the 1st quarter worth about $31,000. Finally, MassMutual Private Wealth & Trust FSB increased its stake in DraftKings by 44.8% in the 1st quarter. MassMutual Private Wealth & Trust FSB now owns 1,024 shares of the company's stock worth $34,000 after purchasing an additional 317 shares in the last quarter. Institutional investors and hedge funds own 37.70% of the company's stock.

Analyst Upgrades and Downgrades

DKNG has been the subject of a number of analyst reports. Susquehanna reaffirmed a "positive" rating and set a $64.00 price objective on shares of DraftKings in a research note on Friday, August 8th. Jefferies Financial Group set a $54.00 price target on shares of DraftKings in a research report on Thursday, August 21st. Barclays reaffirmed an "overweight" rating and issued a $54.00 price objective (up previously from $51.00) on shares of DraftKings in a research note on Friday, August 8th. Deutsche Bank Aktiengesellschaft set a $47.00 target price on shares of DraftKings and gave the company a "hold" rating in a research note on Friday, August 8th. Finally, JPMorgan Chase & Co. assumed coverage on DraftKings in a report on Monday, June 23rd. They issued an "overweight" rating and a $50.00 target price for the company. Twenty-four equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $55.12.

Insider Activity

In other DraftKings news, Director Ryan R. Moore sold 76,390 shares of DraftKings 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 directly owned 402 shares in the company, valued at $18,459.84. The trade was a 99.48% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider R Stanton Dodge sold 105,554 shares of the business's stock in a transaction that occurred on Tuesday, August 5th. The stock was sold at an average price of $44.60, for a total transaction of $4,707,708.40. Following the completion of the sale, the insider directly owned 500,000 shares of the company's stock, valued at $22,300,000. This represents a 17.43% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 658,331 shares of company stock valued at $29,285,365. 47.08% of the stock is currently owned by company insiders.

DraftKings Stock Up 0.9%

DKNG traded up $0.39 during trading on Monday, reaching $43.84. 9,803,435 shares of the stock traded hands, compared to its average volume of 7,421,264. The stock's 50-day simple moving average is $45.07 and its two-hundred day simple moving average is $39.71. The company has a debt-to-equity ratio of 1.82, a current ratio of 1.34 and a quick ratio of 1.34. DraftKings Inc. has a fifty-two week low of $29.64 and a fifty-two week high of $53.61. The stock has a market cap of $21.77 billion, a price-to-earnings ratio of -67.45, a price-to-earnings-growth ratio of 1.03 and a beta of 1.73.

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

DraftKings Profile

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.