Hsbc Holdings PLC Has $3.35 Million Position in DraftKings Inc. $DKNG

Key Points

• HSBC Holdings PLC reduced its DraftKings stake by 33.5% in the fourth quarter, ending with 96,942 shares valued at about $3.35 million.
• Institutional ownership remains strong, with several large investors adding positions in DraftKings; overall, hedge funds and institutions own 37.70% of the stock.
• DraftKings is pushing its prediction-markets strategy by launching DKeX, a proprietary exchange integrated into its app, as analysts and investors view it as a potential growth driver despite ongoing volatility and profitability concerns.

Hsbc Holdings PLC lessened its stake in DraftKings Inc. (NASDAQ:DKNG - Free Report) by 33.5% in the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 96,942 shares of the company's stock after selling 48,897 shares during the period. Hsbc Holdings PLC's holdings in DraftKings were worth $3,347,000 at the end of the most recent reporting period.

Other institutional investors have also added to or reduced their stakes in the company. Viking Global Investors LP acquired a new position in DraftKings in the 3rd quarter valued at approximately $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 purchasing an additional 12,008,357 shares in the last quarter. Janus Henderson Group PLC increased its position in shares of DraftKings by 50.8% during the fourth quarter. Janus Henderson Group PLC now owns 25,313,909 shares of the company's stock valued at $858,893,000 after purchasing an additional 8,524,923 shares during the period. Norges Bank bought a new stake in shares of DraftKings during the fourth quarter valued at approximately $284,466,000. Finally, AQR Capital Management LLC raised its stake in shares of DraftKings by 41.0% in the fourth quarter. AQR Capital Management LLC now owns 16,474,009 shares of the company's stock valued at $567,694,000 after purchasing an additional 4,788,337 shares in the last quarter. 37.70% of the stock is owned by institutional investors and hedge funds.

More DraftKings News

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: DraftKings launched DKeX, its proprietary prediction markets exchange, and integrated it into the DraftKings: Sports & Casino app, giving the company more control over product design, economics, and the customer experience. DraftKings Launches Proprietary Exchange to Bolster Differentiated Predictions Experience
• Positive Sentiment: Investors are encouraged by evidence that DraftKings’ Predictions business is gaining traction, with recent filings showing rising trading volume and management signaling that prediction markets could become a meaningful part of its long-term “super app” strategy. DraftKings Gains as Investors Cheer Prediction-Market Push
• Positive Sentiment: Analyst commentary and recent price-target updates remain constructive, reinforcing the view that the prediction-markets rollout could support revenue growth and sentiment around the stock. DraftKings Shares Climb After Company Unveils DKeX, Its Own Prediction Markets Exchange
• Neutral Sentiment: Some reports note that DraftKings remains volatile as investors balance the upside from prediction markets against profitability, litigation, and macroeconomic risks. DraftKings shares volatile as investors weigh prediction market growth against profitability risks
• Negative Sentiment: Recent articles also highlighted pressure from broader market weakness and concerns about competition, reminding investors that the stock can still swing sharply even after the product launch. Why Is DraftKings Stock Falling On Thursday?

DraftKings Price Performance

Shares of NASDAQ:DKNG opened at $25.70 on Monday. DraftKings Inc. has a 52 week low of $20.46 and a 52 week high of $48.78. The company has a debt-to-equity ratio of 3.03, a quick ratio of 1.02 and a current ratio of 1.02. The company's fifty day moving average is $25.09 and its 200-day moving average is $27.02. The company has a market capitalization of $12.75 billion, a PE ratio of 428.33 and a beta of 1.66.

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

Insider Activity

In other news, Director Woodrow Levin sold 34,234 shares of the firm's stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $25.71, for a total transaction of $880,156.14. Following the completion of the sale, the director owned 29,820 shares of the company's stock, valued at approximately $766,672.20. This trade represents a 53.45% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, insider R Stanton Dodge sold 62,500 shares of DraftKings stock in a transaction that occurred on Thursday, June 11th. The shares were 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 of the company's stock, valued at $16,509,737.44. This trade represents 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. Insiders have sold 97,596 shares of company stock worth $2,756,991 over the last ninety days. Insiders own 47.18% of the company's stock.

Wall Street Analysts Forecast Growth

Several research analysts recently commented on DKNG shares. TD Cowen reaffirmed a "buy" rating and issued a $30.00 target price on shares of DraftKings in a research report on Monday, June 8th. Raymond James Financial upgraded shares of DraftKings from a "market perform" rating to an "outperform" rating in a research note on Friday, April 24th. HSBC raised shares of DraftKings from a "hold" rating to a "hold" rating in a report on Friday, April 24th. New Street Research set a $29.00 target price on shares of DraftKings in a research report on Monday, June 1st. Finally, BTIG Research upped their target price on shares of DraftKings from $28.00 to $30.00 and gave the company a "buy" rating in a research note on Friday, May 8th. One investment analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $34.27.

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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