Geode Capital Management LLC Has $326.39 Million Stock Holdings in DraftKings Inc. $DKNG

Key Points

• Geode Capital Management increased its DraftKings stake by 2.1% in the fourth quarter, bringing its holdings to 9.49 million shares valued at about $326.4 million.
• DraftKings reported Q1 earnings of $0.20 per share, missing estimates by $0.02, while revenue came in at $1.65 billion, slightly above expectations and up 16.8% year over year.
• Analyst sentiment remains cautiously positive, with a consensus rating of “Moderate Buy” and an average target price of $34.15, though some firms have recently trimmed their price targets.

Geode Capital Management LLC boosted its stake in DraftKings Inc. (NASDAQ:DKNG - Free Report) by 2.1% in the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 9,494,860 shares of the company's stock after purchasing an additional 192,160 shares during the quarter. Geode Capital Management LLC owned about 1.91% of DraftKings worth $326,394,000 as of its most recent SEC filing.

A number of other large investors have also bought and sold shares of DKNG. Dagco Inc. acquired a new stake in DraftKings in the fourth quarter worth $26,000. Ameriflex Group Inc. grew its holdings in shares of DraftKings by 100.0% during the third quarter. Ameriflex Group Inc. now owns 810 shares of the company's stock valued at $30,000 after buying an additional 405 shares during the last quarter. Asset Dedication LLC acquired a new position in shares of DraftKings during the third quarter valued at about $37,000. Montag A & Associates Inc. grew its holdings in shares of DraftKings by 82.5% during the fourth quarter. Montag A & Associates Inc. now owns 1,106 shares of the company's stock valued at $38,000 after buying an additional 500 shares during the last quarter. Finally, Aventura Private Wealth LLC acquired a new position in shares of DraftKings during the fourth quarter valued at about $39,000. 37.70% of the stock is currently owned by institutional investors and hedge funds.

DraftKings Stock Performance

Shares of DKNG stock opened at $26.33 on Tuesday. The firm has a market cap of $13.06 billion, a price-to-earnings ratio of 438.83 and a beta of 1.66. The company has a debt-to-equity ratio of 3.03, a quick ratio of 1.02 and a current ratio of 1.02. DraftKings Inc. has a 52 week low of $20.46 and a 52 week high of $48.78. The firm's 50-day simple moving average is $23.64 and its two-hundred day simple moving average is $27.73.

DraftKings (NASDAQ:DKNG - Get Free Report) last announced its quarterly earnings data on Friday, May 8th. The company reported $0.20 EPS for the quarter, missing the consensus estimate of $0.22 by ($0.02). The company 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 13.51% and a net margin of 0.93%.The business's revenue was up 16.8% on a year-over-year basis. During the same period in the prior year, the firm posted ($0.07) EPS. As a group, equities analysts forecast that DraftKings Inc. will post 0.6 earnings per share for the current year.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on DKNG. Stifel Nicolaus reduced their price objective on shares of DraftKings from $44.00 to $40.00 and set a "buy" rating for the company in a report on Tuesday, February 17th. New Street Research set a $29.00 price objective on shares of DraftKings in a report on Monday. Moffett Nathanson cut shares of DraftKings from a "buy" rating to a "neutral" rating and reduced their price objective for the company from $38.00 to $27.00 in a report on Friday, April 24th. UBS Group reiterated a "buy" rating and set a $43.00 price objective on shares of DraftKings in a report on Wednesday, May 20th. Finally, Sanford C. Bernstein reiterated an "outperform" rating and set a $30.00 price objective on shares of DraftKings in a report on Thursday, March 5th. One analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating, nine have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, DraftKings currently has an average rating of "Moderate Buy" and a consensus target price of $34.15.

Insider Buying and Selling

In related news, Director Jocelyn Moore sold 2,150 shares of the company's stock in a transaction that occurred on Friday, March 13th. The shares were sold at an average price of $25.60, for a total transaction of $55,040.00. Following the sale, the director owned 1,406 shares of the company's stock, valued at approximately $35,993.60. This represents a 60.46% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Paul Liberman sold 484,417 shares of the company's stock in a transaction that occurred on Wednesday, March 11th. The stock was sold at an average price of $25.16, for a total transaction of $12,187,931.72. Following the sale, the insider directly owned 213,597 shares in the company, valued at $5,374,100.52. This trade represents a 69.40% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 521,663 shares of company stock valued at $13,144,962. Company 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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