Jump Financial LLC Acquires New Shares in DraftKings Inc. $DKNG

Key Points

• Jump Financial LLC invested $819,000 in DraftKings Inc. by acquiring 24,647 shares during the first quarter, reflecting a significant interest in the company.
• Insiders have been actively selling shares, with notable sales including Matthew Kalish selling 210,000 shares for over $9 million, resulting in a 4.77% decrease in his ownership.
• Analysts have given DraftKings an average price target of $54.50, with 25 analysts rating the stock as a Buy, indicating strong market confidence despite recent insider transactions.

Jump Financial LLC acquired a new stake in DraftKings Inc. (NASDAQ:DKNG - Free Report) in the 1st quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor acquired 24,647 shares of the company's stock, valued at approximately $819,000.

Several other hedge funds and other institutional investors have also made changes to their positions in the company. Beacon Pointe Advisors LLC lifted its stake in DraftKings by 1.9% in the fourth quarter. Beacon Pointe Advisors LLC now owns 10,699 shares of the company's stock valued at $398,000 after acquiring an additional 203 shares during the last quarter. Nissay Asset Management Corp Japan ADV grew its holdings in DraftKings by 0.3% during the fourth quarter. Nissay Asset Management Corp Japan ADV now owns 77,696 shares of the company's stock worth $2,946,000 after purchasing an additional 217 shares during the period. Brooklyn Investment Group increased its position in DraftKings by 7.3% during the first quarter. Brooklyn Investment Group now owns 3,987 shares of the company's stock worth $132,000 after buying an additional 270 shares during the last quarter. Snowden Capital Advisors LLC increased its position in DraftKings by 3.5% during the fourth quarter. Snowden Capital Advisors LLC now owns 8,724 shares of the company's stock worth $325,000 after buying an additional 296 shares during the last quarter. Finally, Obermeyer Wealth Partners raised its stake in DraftKings by 3.4% in the first quarter. Obermeyer Wealth Partners now owns 8,930 shares of the company's stock valued at $297,000 after buying an additional 297 shares during the period. 37.70% of the stock is owned by institutional investors.

Insider Activity at DraftKings

In related news, insider R Stanton Dodge sold 158,331 shares of the firm's stock in a transaction dated 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 sale, the insider directly owned 504,381 shares of the company's stock, valued at $19,670,859. This trade represents a 23.89% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, insider Matthew Kalish sold 210,000 shares of the 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 completion of the transaction, the insider directly owned 4,190,233 shares of the company's stock, valued at $179,760,995.70. This trade represents a 4.77% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 816,662 shares of company stock worth $35,460,274 in the last three months. Insiders own 51.19% of the company's stock.

DraftKings Price Performance

DKNG stock traded down $0.49 during mid-day trading on Thursday, hitting $47.19. The stock had a trading volume of 7,672,878 shares, compared to its average volume of 10,134,969. The firm has a fifty day simple moving average of $44.45 and a 200 day simple moving average of $39.80. The firm has a market capitalization of $41.97 billion, a P/E ratio of -72.68, a P/E/G ratio of 1.14 and a beta of 1.73. The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 1.82. DraftKings Inc. has a 52 week low of $29.64 and a 52 week high of $53.61.

DraftKings (NASDAQ:DKNG - Get Free Report) last posted its quarterly earnings results on Thursday, August 7th. The company reported $0.30 earnings per share (EPS) for the quarter, topping the consensus estimate 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 last year, the business posted $0.12 EPS. The firm's revenue for the quarter was up 36.9% on a year-over-year basis. DraftKings has set its FY 2025 guidance at EPS. As a group, research analysts forecast that DraftKings Inc. will post 0.64 EPS for the current year.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on DKNG shares. Benchmark boosted their target price on DraftKings from $50.00 to $53.00 and gave the stock a "buy" rating in a report on Thursday, August 7th. JMP Securities decreased their price objective on shares of DraftKings from $54.00 to $50.00 and set a "market outperform" rating on the stock in a report on Thursday, June 5th. Truist Financial increased their price objective on shares of DraftKings from $50.00 to $55.00 and gave the company a "buy" rating in a research report on Wednesday, July 16th. JPMorgan Chase & Co. assumed 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. Finally, Bank of America decreased their target price on DraftKings from $60.00 to $50.00 and set a "buy" rating on the stock in a research report on Friday, May 9th. Twenty-four equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $54.37.

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.