Hsbc Holdings PLC Buys 49,086 Shares of DraftKings Inc. $DKNG

Key Points

• Hsbc Holdings PLC increased its stake in DraftKings Inc. by 17.8% in the first quarter, owning 325,315 shares valued at approximately $11.03 million.
• In recent months, a number of institutional investors have either increased or initiated positions in DraftKings, with 37.70% of the stock currently held by institutional investors and hedge funds.
• DraftKings reported a $0.30 EPS for the latest quarter, exceeding estimates, with revenue growth of 36.9% year-over-year, prompting analysts to revise ratings towards a consensus target price of $54.50.

Hsbc Holdings PLC increased its stake in DraftKings Inc. (NASDAQ:DKNG - Free Report) by 17.8% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 325,315 shares of the company's stock after purchasing an additional 49,086 shares during the period. Hsbc Holdings PLC's holdings in DraftKings were worth $11,035,000 as of its most recent SEC filing.

Several other institutional investors have also recently bought and sold shares of DKNG. Raiffeisen Bank International AG bought a new position in DraftKings in the 4th quarter worth approximately $25,000. FNY Investment Advisers LLC acquired a new stake in DraftKings during the 1st quarter worth $26,000. Smallwood Wealth Investment Management LLC acquired a new stake in DraftKings during the 1st quarter worth $27,000. Point72 Asia Singapore Pte. Ltd. acquired a new stake in DraftKings during the 4th quarter worth $28,000. Finally, GPS Wealth Strategies Group LLC grew its holdings in DraftKings by 197.9% during the 1st quarter. GPS Wealth Strategies Group LLC now owns 849 shares of the company's stock worth $28,000 after acquiring an additional 564 shares during the period. Institutional investors own 37.70% of the company's stock.

Analysts Set New Price Targets

DKNG has been the subject of a number of analyst reports. JPMorgan Chase & Co. initiated coverage on shares of DraftKings in a report on Monday, June 23rd. They set an "overweight" rating and a $50.00 target price for the company. Morgan Stanley reissued an "overweight" rating and issued a $52.00 price target (up previously from $51.00) on shares of DraftKings in a report on Friday, July 11th. Mizuho decreased their price target on shares of DraftKings from $59.00 to $58.00 and set an "outperform" rating for the company in a report on Monday, May 12th. Benchmark boosted their price target on shares of DraftKings from $50.00 to $53.00 and gave the company a "buy" rating in a report on Thursday, August 7th. 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 price objective on the stock. Twenty-five investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $54.50.

DraftKings Stock Performance

Shares of DKNG stock traded down $0.60 on Friday, reaching $47.63. The stock had a trading volume of 2,715,922 shares, compared to its average volume of 10,187,739. The company has a quick ratio of 1.34, a current ratio of 1.34 and a debt-to-equity ratio of 1.82. The firm's 50-day moving average is $43.97 and its two-hundred day moving average is $39.78. The firm has a market capitalization of $42.37 billion, a price-to-earnings ratio of -73.33, a P/E/G ratio of 1.13 and a beta of 1.70. DraftKings Inc. has a 12 month low of $29.64 and a 12 month high of $53.61.

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 net margin of 5.63% and a negative return on equity of 30.06%. The business had revenue of $1.51 billion for the quarter, compared to analyst estimates of $1.39 billion. During the same quarter in the prior year, the business earned $0.12 EPS. DraftKings's quarterly revenue was up 36.9% on a year-over-year basis. DraftKings has set its FY 2025 guidance at EPS. On average, research analysts expect that DraftKings Inc. will post 0.64 EPS for the current fiscal year.

Insider Activity

In other news, Director Ryan R. Moore sold 76,390 shares of the company's stock in a transaction that occurred on Thursday, August 21st. The shares were sold at an average price of $45.92, for a total transaction of $3,507,828.80. Following the completion of the sale, the director owned 402 shares of the company's stock, valued at approximately $18,459.84. This represents a 99.48% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Jocelyn Moore sold 4,861 shares of the company's stock in a transaction that occurred on Wednesday, August 13th. The stock was sold at an average price of $43.21, for a total transaction of $210,043.81. Following the sale, the director directly owned 1,461 shares of the company's stock, valued at approximately $63,129.81. This trade represents a 76.89% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 763,885 shares of company stock worth $32,227,682. Insiders own 51.19% of the company's stock.

DraftKings Company 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.