NBW Capital LLC Decreases Stock Holdings in DraftKings Inc. (NASDAQ:DKNG)

Key Points

• NBW Capital LLC has reduced its stake in DraftKings Inc. by 19.7%, selling 22,638 shares and now holds 92,530 shares valued at approximately $3.07 million.
• Multiple institutional investors, including American Century Companies Inc. and FMR LLC, significantly increased their positions in DraftKings, reflecting growing confidence in the company.
• DraftKings reported strong quarterly earnings with $1.51 billion in revenue, surpassing estimates and showing a 36.9% year-over-year growth.

NBW Capital LLC lowered its position in shares of DraftKings Inc. (NASDAQ:DKNG - Free Report) by 19.7% in the first quarter, according to the company in its most recent filing with the SEC. The firm owned 92,530 shares of the company's stock after selling 22,638 shares during the quarter. NBW Capital LLC's holdings in DraftKings were worth $3,073,000 at the end of the most recent reporting period.

Several other large investors have also added to or reduced their stakes in the company. Brown Advisory Inc. lifted its position in DraftKings by 14.6% during the first quarter. Brown Advisory Inc. now owns 7,600 shares of the company's stock valued at $252,000 after purchasing an additional 968 shares during the period. IFM Investors Pty Ltd raised its position in shares of DraftKings by 9.3% in the first quarter. IFM Investors Pty Ltd now owns 83,750 shares of the company's stock worth $2,781,000 after acquiring an additional 7,147 shares during the period. Capital Investment Advisory Services LLC acquired a new position in shares of DraftKings in the first quarter worth about $515,000. Allspring Global Investments Holdings LLC raised its position in shares of DraftKings by 18.9% in the first quarter. Allspring Global Investments Holdings LLC now owns 2,728,482 shares of the company's stock worth $90,558,000 after acquiring an additional 434,525 shares during the period. Finally, Kentucky Retirement Systems acquired a new position in shares of DraftKings during the 1st quarter worth about $1,026,000. Hedge funds and other institutional investors own 37.70% of the company's stock.

Insider Activity at DraftKings

In other DraftKings news, Director Jocelyn Moore sold 3,136 shares of DraftKings stock in a transaction dated Friday, May 30th. The shares were sold at an average price of $35.28, for a total transaction of $110,638.08. Following the completion of the transaction, the director owned 5,947 shares in the company, valued at approximately $209,810.16. The trade was a 34.53% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider R Stanton Dodge sold 105,554 shares of DraftKings stock in a transaction dated Tuesday, August 5th. The stock was sold at an average price of $44.60, for a total transaction of $4,707,708.40. Following the transaction, the insider owned 500,000 shares of the company's stock, valued at approximately $22,300,000. The trade was a 17.43% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 642,181 shares of company stock worth $25,550,925 over the last three months. 51.19% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on DKNG shares. Macquarie reduced their price target on shares of DraftKings from $55.00 to $53.00 and set an "outperform" rating for the company in a research report on Monday, May 12th. BMO Capital Markets reissued an "outperform" rating and issued a $65.00 price target on shares of DraftKings in a research note on Thursday, April 24th. Stifel Nicolaus dropped their price target on shares of DraftKings from $53.00 to $51.00 and set a "buy" rating for the company in a research note on Wednesday, July 16th. TD Securities dropped their target price on shares of DraftKings from $60.00 to $55.00 and set a "buy" rating for the company in a report on Thursday, April 24th. Finally, Morgan Stanley reiterated an "overweight" rating and issued a $52.00 target price (up previously from $51.00) on shares of DraftKings in a report on Friday, July 11th. One equities research analyst has rated the stock with a hold rating and twenty-six have given a buy rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $54.78.

DraftKings Stock Performance

DraftKings stock traded down $2.32 during midday trading on Friday, hitting $42.88. 16,812,787 shares of the company's stock were exchanged, compared to its average volume of 9,222,459. DraftKings Inc. has a 12-month low of $29.29 and a 12-month high of $53.61. The stock has a market cap of $38.13 billion, a price-to-earnings ratio of -65.97, a price-to-earnings-growth ratio of 1.44 and a beta of 1.70. The company has a debt-to-equity ratio of 2.11, a quick ratio of 1.20 and a current ratio of 1.20. The firm's 50 day simple moving average is $41.49 and its 200 day simple moving average is $39.42.

DraftKings (NASDAQ:DKNG - Get Free Report) last released its earnings results on Wednesday, August 6th. The company reported $0.30 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 30.23%. The company had revenue of $1.51 billion during the quarter, compared to analysts' expectations of $1.39 billion. During the same quarter last year, the business earned $0.12 EPS. The business's revenue was up 36.9% on a year-over-year basis. Equities research analysts predict that DraftKings Inc. will post 0.64 EPS for the current year.

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.