Ieq Capital LLC Raises Holdings in DraftKings Inc. $DKNG

Key Points

• Ieq Capital LLC increased its holdings in DraftKings Inc. by 669.9% in the first quarter, owning approximately 1.38 million shares valued at about $45.9 million.
• Analysts have set a consensus target price of $54.50 for DraftKings, with twenty-five analysts rating it as a "Buy" and two as a "Hold."
• DraftKings reported a net revenue increase of 36.9% year-over-year, posting earnings per share of $0.30, exceeding analysts' expectations of $0.16.

Ieq Capital LLC boosted its holdings in DraftKings Inc. (NASDAQ:DKNG - Free Report) by 669.9% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 1,383,240 shares of the company's stock after buying an additional 1,203,573 shares during the quarter. Ieq Capital LLC owned approximately 0.16% of DraftKings worth $45,937,000 at the end of the most recent reporting period.

Several other hedge funds have also recently added to or reduced their stakes in the company. Raiffeisen Bank International AG bought a new stake in shares of DraftKings in the 4th quarter valued at $25,000. FNY Investment Advisers LLC bought a new stake in shares of DraftKings in the 1st quarter worth $26,000. Smallwood Wealth Investment Management LLC bought a new position in DraftKings during the first quarter valued at about $27,000. Point72 Asia Singapore Pte. Ltd. bought a new position in DraftKings during the fourth quarter valued at about $28,000. Finally, GPS Wealth Strategies Group LLC grew its position in DraftKings by 197.9% during the first quarter. GPS Wealth Strategies Group LLC now owns 849 shares of the company's stock valued at $28,000 after buying an additional 564 shares during the period. Institutional investors own 37.70% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on the stock. Citigroup reissued a "buy" rating on shares of DraftKings in a report on Friday, July 11th. Needham & Company LLC reaffirmed a "buy" rating and issued a $65.00 target price on shares of DraftKings in a research note on Friday, May 9th. Bank of America reduced their price target on shares of DraftKings from $60.00 to $50.00 and set a "buy" rating on the stock in a research report on Friday, May 9th. Jefferies Financial Group set a $54.00 target price on shares of DraftKings in a report on Thursday, August 21st. Finally, Macquarie cut their target price on shares of DraftKings from $55.00 to $53.00 and set an "outperform" rating on the stock in a report on Monday, May 12th. Twenty-five research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, DraftKings has an average rating of "Moderate Buy" and an average price target of $54.50.

DraftKings Stock Performance

NASDAQ:DKNG traded down $0.25 during mid-day trading on Friday, reaching $47.98. The company's stock had a trading volume of 4,825,595 shares, compared to its average volume of 9,333,800. DraftKings Inc. has a 12-month low of $29.64 and a 12-month high of $53.61. The firm's fifty day moving average price is $44.12 and its two-hundred day moving average price is $39.77. The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 1.82. The stock has a market cap of $42.68 billion, a P/E ratio of -73.82, a PEG ratio of 1.14 and a beta of 1.70.

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

Insider Activity

In other DraftKings news, Director Jocelyn Moore sold 4,861 shares of DraftKings stock in a transaction on Wednesday, August 13th. The shares were sold at an average price of $43.21, for a total value of $210,043.81. Following the completion of the transaction, the director directly owned 1,461 shares of the company's stock, valued at $63,129.81. This trade represents a 76.89% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, insider R Stanton Dodge sold 158,331 shares of the firm's stock in a transaction on Wednesday, June 18th. The stock was sold at an average price of $39.00, for a total value of $6,174,909.00. Following the completion of the sale, the insider owned 504,381 shares of the company's stock, valued at approximately $19,670,859. This represents a 23.89% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 763,885 shares of company stock worth $32,227,682. 51.19% of the stock is owned by corporate insiders.

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.