National Bank of Canada FI Trims Stock Holdings in DraftKings Inc. $DKNG

Key Points

• National Bank of Canada FI reduced its holdings in DraftKings Inc. by 98.8% in the first quarter, bringing its ownership down to approximately 6,935 shares valued at $230,000.
• Other institutional investors have shifted their positions as well, with significant increases from firms like T. Rowe Price and Janus Henderson, reflecting a growing interest in DraftKings.
• DraftKings reported a 36.9% year-over-year revenue increase, totaling $1.51 billion for the quarter, significantly exceeding analyst expectations.

National Bank of Canada FI trimmed its holdings in DraftKings Inc. (NASDAQ:DKNG - Free Report) by 98.8% during the 1st quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 6,935 shares of the company's stock after selling 577,080 shares during the quarter. National Bank of Canada FI's holdings in DraftKings were worth $230,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently modified their holdings of the business. T. Rowe Price Investment Management Inc. raised its holdings in shares of DraftKings by 4.0% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 18,569,637 shares of the company's stock worth $690,791,000 after buying an additional 707,504 shares during the period. Janus Henderson Group PLC grew its stake in DraftKings by 31,346.8% in the fourth quarter. Janus Henderson Group PLC now owns 9,381,853 shares of the company's stock worth $349,005,000 after purchasing an additional 9,352,019 shares in the last quarter. Baillie Gifford & Co. grew its stake in DraftKings by 26.5% in the first quarter. Baillie Gifford & Co. now owns 8,390,236 shares of the company's stock worth $278,640,000 after purchasing an additional 1,756,778 shares in the last quarter. Massachusetts Financial Services Co. MA grew its stake in DraftKings by 4.4% in the first quarter. Massachusetts Financial Services Co. MA now owns 7,098,641 shares of the company's stock worth $235,746,000 after purchasing an additional 301,134 shares in the last quarter. Finally, Jericho Capital Asset Management L.P. grew its stake in DraftKings by 10.2% in the fourth quarter. Jericho Capital Asset Management L.P. now owns 5,245,494 shares of the company's stock worth $195,132,000 after purchasing an additional 484,794 shares in the last quarter. 37.70% of the stock is currently owned by hedge funds and other institutional investors.

DraftKings Stock Performance

Shares of DKNG stock opened at $44.94 on Monday. The firm has a market capitalization of $39.97 billion, a price-to-earnings ratio of -69.14, a price-to-earnings-growth ratio of 1.07 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 business has a fifty day moving average of $42.39 and a 200 day moving average of $39.46. 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 issued its earnings results on Thursday, August 7th. The company reported $0.30 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.16 by $0.14. The company had revenue of $1.51 billion during the quarter, compared to analyst estimates of $1.39 billion. DraftKings had a negative return on equity of 30.06% and a negative net margin of 5.63%. The firm's quarterly revenue was up 36.9% on a year-over-year basis. During the same quarter last year, the business posted $0.12 EPS. As a group, research analysts expect that DraftKings Inc. will post 0.64 earnings per share for the current year.

Insider Buying and Selling

In related news, CFO Alan Wayne Ellingson sold 5,725 shares of DraftKings stock in a transaction dated Friday, August 15th. The stock was sold at an average price of $43.53, for a total value of $249,209.25. Following the completion of the transaction, the chief financial officer owned 172,824 shares in the company, valued at $7,523,028.72. The trade was a 3.21% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Matthew Kalish sold 210,000 shares of DraftKings stock in a transaction dated 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 completion of the transaction, the insider owned 4,190,233 shares of the company's stock, valued at approximately $179,760,995.70. This represents a 4.77% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 645,938 shares of company stock worth $26,823,776. Corporate insiders own 47.08% of the company's stock.

Analysts Set New Price Targets

DKNG has been the topic of several research analyst reports. Needham & Company LLC reissued a "buy" rating and issued a $65.00 price objective on shares of DraftKings in a research note on Friday, May 9th. Mizuho dropped their price objective on DraftKings from $59.00 to $58.00 and set an "outperform" rating on the stock in a research note on Monday, May 12th. Bank of America dropped their price objective on DraftKings from $60.00 to $50.00 and set a "buy" rating on the stock in a research note on Friday, May 9th. TD Securities dropped their price objective on DraftKings from $60.00 to $55.00 and set a "buy" rating on the stock in a research note on Thursday, April 24th. Finally, JPMorgan Chase & Co. began coverage on DraftKings in a research report on Monday, June 23rd. They set an "overweight" rating and a $50.00 target price on the stock. Two analysts have rated the stock with a hold rating and twenty-six have assigned a buy rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $54.50.

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.

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