Hodges Capital Management Inc. Boosts Holdings in DraftKings Inc. $DKNG

Key Points

• Hodges Capital Management increased its DraftKings stake by 19.9% in the first quarter, buying 143,409 more shares and lifting its position to 864,644 shares worth about $18.7 million.
• Other institutional investors have also been active in DKNG, with firms like Viking Global, Capital World Investors, Janus Henderson, Norges Bank, and AQR all reporting sizable holdings; institutions now own 37.7% of the company.
• DraftKings posted quarterly revenue of $1.65 billion, topping expectations, but earnings per share of $0.20 missed estimates. Analysts remain broadly bullish, with an average Moderate Buy rating and a $34.24 price target.

Hodges Capital Management Inc. grew its stake in shares of DraftKings Inc. (NASDAQ:DKNG - Free Report) by 19.9% during the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 864,644 shares of the company's stock after purchasing an additional 143,409 shares during the period. DraftKings makes up 1.5% of Hodges Capital Management Inc.'s investment portfolio, making the stock its 13th largest holding. Hodges Capital Management Inc. owned approximately 0.17% of DraftKings worth $18,694,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors also recently modified their holdings of the company. Viking Global Investors LP purchased a new stake in DraftKings in the third quarter worth about $561,125,000. Capital World Investors grew its holdings in shares of DraftKings by 181.4% during the 4th quarter. Capital World Investors now owns 18,626,429 shares of the company's stock worth $641,867,000 after acquiring an additional 12,008,357 shares during the period. Janus Henderson Group PLC grew its holdings in shares of DraftKings by 50.8% during the 4th quarter. Janus Henderson Group PLC now owns 25,313,909 shares of the company's stock worth $858,893,000 after acquiring an additional 8,524,923 shares during the period. Norges Bank bought a new position in shares of DraftKings in the 4th quarter worth approximately $284,466,000. Finally, AQR Capital Management LLC raised its position in shares of DraftKings by 41.0% in the 4th quarter. AQR Capital Management LLC now owns 16,474,009 shares of the company's stock worth $567,694,000 after acquiring an additional 4,788,337 shares in the last quarter. Hedge funds and other institutional investors own 37.70% of the company's stock.

Insider Activity

In other news, Director Woodrow Levin sold 34,234 shares of DraftKings stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $25.71, for a total value of $880,156.14. Following the completion of the transaction, the director owned 29,820 shares of the company's stock, valued at $766,672.20. The trade was a 53.45% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider R Stanton Dodge sold 62,500 shares of the company's stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $29.68, for a total transaction of $1,855,000.00. Following the completion of the transaction, the insider owned 556,258 shares in the company, valued at approximately $16,509,737.44. The trade was a 10.10% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 97,596 shares of company stock valued at $2,756,991. 47.18% of the stock is owned by insiders.

DraftKings Stock Performance

DraftKings stock opened at $25.89 on Monday. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 3.03. The company has a market capitalization of $12.84 billion, a P/E ratio of 431.50 and a beta of 1.65. The stock's 50 day moving average is $25.36 and its 200 day moving average is $26.69. DraftKings Inc. has a twelve month low of $20.46 and a twelve month high of $48.78.

DraftKings (NASDAQ:DKNG - Get Free Report) last announced its quarterly earnings data on Friday, May 8th. The company reported $0.20 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.22 by ($0.02). DraftKings had a net margin of 0.93% and a return on equity of 13.51%. The company had revenue of $1.65 billion for the quarter, compared to analysts' expectations of $1.63 billion. During the same quarter in the previous year, the firm posted ($0.07) EPS. The firm's quarterly revenue was up 16.8% compared to the same quarter last year. On average, equities research analysts predict that DraftKings Inc. will post 0.6 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several equities research analysts recently weighed in on DKNG shares. Stephens began coverage on DraftKings in a research report on Friday, April 24th. They set an "overweight" rating on the stock. TD Cowen reiterated a "buy" rating and issued a $30.00 price objective on shares of DraftKings in a report on Monday, June 8th. UBS Group raised their price objective on DraftKings from $43.00 to $49.00 and gave the company a "buy" rating in a research report on Friday, June 5th. New Street Research set a $29.00 target price on shares of DraftKings in a report on Monday, June 1st. Finally, Argus downgraded shares of DraftKings from a "buy" rating to a "hold" rating in a research report on Tuesday, March 17th. One analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, eight have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $34.24.

DraftKings Profile

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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