Great Lakes Advisors LLC Purchases New Stake in DraftKings Inc. $DKNG

Key Points

• Great Lakes Advisors LLC acquired a new stake in DraftKings Inc., purchasing 52,743 shares valued at approximately $1.75 million during Q1 of 2023.
• In recent insider activity, Matthew Kalish sold 210,000 shares for over $9 million, representing a 4.77% decrease in their ownership.
• DraftKings reported a 36.9% increase in revenue year-over-year for the last quarter, with earnings of $0.30 per share, exceeding expectations.

Great Lakes Advisors LLC purchased a new stake in DraftKings Inc. (NASDAQ:DKNG - Free Report) during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor purchased 52,743 shares of the company's stock, valued at approximately $1,752,000.

A number of other large investors have also added to or reduced their stakes in the business. Voleon Capital Management LP bought a new stake in DraftKings in the 1st quarter valued at $1,033,000. First Dallas Securities Inc. raised its stake in DraftKings by 21.1% in the 1st quarter. First Dallas Securities Inc. now owns 93,061 shares of the company's stock valued at $3,091,000 after acquiring an additional 16,245 shares during the period. Teza Capital Management LLC bought a new position in DraftKings during the 1st quarter worth $219,000. Shellback Capital LP increased its position in DraftKings by 29.8% during the 1st quarter. Shellback Capital LP now owns 925,000 shares of the company's stock worth $30,719,000 after buying an additional 212,500 shares during the period. Finally, Samlyn Capital LLC increased its position in DraftKings by 4.1% during the 1st quarter. Samlyn Capital LLC now owns 4,505,441 shares of the company's stock worth $149,626,000 after buying an additional 177,924 shares during the period. Institutional investors own 37.70% of the company's stock.

Insider Activity

In other news, insider Matthew Kalish sold 210,000 shares of DraftKings stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $42.90, for a total transaction of $9,009,000.00. Following the sale, the insider directly owned 4,190,233 shares of the company's stock, valued at approximately $179,760,995.70. This trade represents a 4.77% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Jocelyn Moore sold 4,861 shares of DraftKings stock in a transaction dated Wednesday, August 13th. The shares were sold at an average price of $43.21, for a total value of $210,043.81. Following the sale, the director directly owned 1,461 shares in the company, valued at $63,129.81. The trade was a 76.89% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 816,662 shares of company stock valued at $35,460,274. 51.19% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

DKNG has been the topic of several recent research reports. JPMorgan Chase & Co. initiated coverage on DraftKings in a research report on Monday, June 23rd. They set an "overweight" rating and a $50.00 price objective on the stock. Barclays reiterated an "overweight" rating and set a $54.00 price objective (up previously from $51.00) on shares of DraftKings in a research report on Friday, August 8th. Morgan Stanley reiterated an "overweight" rating and set a $52.00 price objective (up previously from $51.00) on shares of DraftKings in a research report on Friday, July 11th. Jefferies Financial Group set a $54.00 target price on DraftKings in a report on Thursday, August 21st. Finally, Sanford C. Bernstein started coverage on shares of DraftKings in a research report on Wednesday, June 4th. They issued an "outperform" rating and a $46.00 target price for the company. Twenty-four investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, DraftKings currently has a consensus rating of "Moderate Buy" and a consensus price target of $55.12.

DraftKings Stock Up 0.5%

Shares of DKNG opened at $45.87 on Friday. DraftKings Inc. has a 52 week low of $29.64 and a 52 week high of $53.61. The stock has a market capitalization of $22.77 billion, a price-to-earnings ratio of -70.57, a PEG ratio of 1.08 and a beta of 1.73. The company has a debt-to-equity ratio of 1.82, a quick ratio of 1.34 and a current ratio of 1.34. The stock has a fifty day moving average of $44.97 and a 200-day moving average of $39.68.

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

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.

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