Mitsubishi UFJ Asset Management Co. Ltd. Purchases 35,092 Shares of DraftKings Inc. (NASDAQ:DKNG)

Key Points

• Mitsubishi UFJ Asset Management Co. Ltd. increased its stake in DraftKings by 6.8%, holding approximately 554,136 shares worth $18.4 million at the end of the first quarter.
• Several other institutional investors, including Raiffeisen Bank International AG and Point72 Asia Singapore Pte. Ltd., also acquired new stakes in DraftKings during recent quarters.
• Analysts maintain a "Moderate Buy" consensus on DraftKings, with a price target adjusted to $54.78, reflecting optimistic growth prospects despite the company's current negative earnings ratio.

Mitsubishi UFJ Asset Management Co. Ltd. raised its position in DraftKings Inc. (NASDAQ:DKNG - Free Report) by 6.8% during the first quarter, according to the company in its most recent disclosure with the SEC. The firm owned 554,136 shares of the company's stock after acquiring an additional 35,092 shares during the quarter. Mitsubishi UFJ Asset Management Co. Ltd. owned approximately 0.06% of DraftKings worth $18,403,000 at the end of the most recent quarter.

A number of other institutional investors also recently bought and sold shares of the company. CenterBook Partners LP bought a new position in DraftKings in the first quarter valued at about $7,767,000. Ontario Teachers Pension Plan Board bought a new position in shares of DraftKings in the first quarter worth about $636,000. Altfest L J & Co. Inc. bought a new position in shares of DraftKings in the first quarter worth about $502,000. Charles Schwab Investment Management Inc. raised its stake in shares of DraftKings by 3.5% in the first quarter. Charles Schwab Investment Management Inc. now owns 3,355,077 shares of the company's stock worth $111,422,000 after buying an additional 113,780 shares during the period. Finally, Nicholas Hoffman & Company LLC. bought a new position in shares of DraftKings in the first quarter worth about $332,000. Institutional investors own 37.70% of the company's stock.

DraftKings Trading Up 0.1%

Shares of DraftKings stock traded up $0.06 on Wednesday, reaching $43.16. The company had a trading volume of 8,357,477 shares, compared to its average volume of 10,422,905. The firm has a market cap of $38.38 billion, a price-to-earnings ratio of -66.40, a P/E/G ratio of 1.24 and a beta of 1.70. The company has a debt-to-equity ratio of 1.82, a current ratio of 1.34 and a quick ratio of 1.34. The firm's 50-day moving average price is $41.84 and its two-hundred day moving average price is $39.44. DraftKings Inc. has a 1 year low of $29.64 and a 1 year high of $53.61.

DraftKings (NASDAQ:DKNG - Get Free Report) last posted its quarterly earnings data on Thursday, August 7th. The company reported $0.30 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.16 by $0.14. DraftKings had a negative return on equity of 30.06% and a negative net margin of 5.63%. The company had revenue of $1.51 billion during the quarter, compared to analysts' expectations of $1.39 billion. During the same quarter in the previous year, the business earned $0.12 EPS. DraftKings's revenue was up 36.9% compared to the same quarter last year. As a group, research analysts predict that DraftKings Inc. will post 0.64 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on DKNG shares. JPMorgan Chase & Co. started coverage on DraftKings in a research note on Monday, June 23rd. They issued an "overweight" rating and a $50.00 price objective on the stock. Wall Street Zen upgraded DraftKings from a "hold" rating to a "buy" rating in a research report on Saturday. BMO Capital Markets reiterated an "outperform" rating and set a $65.00 target price on shares of DraftKings in a research report on Thursday, April 24th. TD Securities cut their target price on DraftKings from $60.00 to $55.00 and set a "buy" rating for the company in a research report on Thursday, April 24th. Finally, Guggenheim cut their target price on DraftKings from $61.00 to $60.00 and set a "buy" rating for the company in a research report on Monday, May 12th. Two research analysts have rated the stock with a hold rating and twenty-six have issued a buy rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $54.50.

Insiders Place Their Bets

In related news, CFO Alan Wayne Ellingson sold 6,829 shares of the business's stock in a transaction on Friday, May 16th. The stock was sold at an average price of $36.77, for a total transaction of $251,102.33. Following the completion of the transaction, the chief financial officer owned 171,268 shares in the company, valued at $6,297,524.36. The trade was a 3.83% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Matthew Kalish sold 210,000 shares of the business's stock in a transaction on Tuesday, August 12th. The shares were sold at an average price of $42.90, for a total value of $9,009,000.00. Following the transaction, the insider owned 4,190,233 shares of the company's stock, valued at approximately $179,760,995.70. The trade was a 4.77% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 642,181 shares of company stock worth $26,615,625 in the last 90 days. 51.19% of the stock is owned by insiders.

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.