Nordea Investment Management AB Increases Position in DraftKings Inc. $DKNG

Key Points

• Nordea Investment Management AB boosted its stake in DraftKings by 1,996.2% in Q3, purchasing 401,037 shares to hold 421,127 shares (about 0.08% of the company) valued at ~$16.2 million.
• DraftKings missed recent quarterly expectations, reporting EPS of ($0.26) vs. $0.01 expected and revenue of $1.14 billion vs. $1.40 billion expected; the company remains unprofitable with a negative P/E (-62.21) and a market cap of $17.65 billion.
• Analysts show a consensus of "Moderate Buy" with a $47.07 target (25 Buys, 7 Holds, 1 Sell), while insiders remain active—an executive sold ~52,777 shares and a director purchased 10,000 shares recently.

Nordea Investment Management AB lifted its stake in DraftKings Inc. (NASDAQ:DKNG - Free Report) by 1,996.2% in the 3rd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 421,127 shares of the company's stock after purchasing an additional 401,037 shares during the period. Nordea Investment Management AB owned approximately 0.08% of DraftKings worth $16,205,000 as of its most recent SEC filing.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. TD Private Client Wealth LLC lifted its position in shares of DraftKings by 54.4% during the 2nd quarter. TD Private Client Wealth LLC now owns 800 shares of the company's stock valued at $34,000 after acquiring an additional 282 shares during the period. Atlantic Union Bankshares Corp purchased a new position in DraftKings in the 2nd quarter valued at approximately $45,000. Delos Wealth Advisors LLC acquired a new position in DraftKings during the second quarter worth $47,000. Ameritas Advisory Services LLC purchased a new stake in DraftKings during the second quarter worth $48,000. Finally, Pinnacle Bancorp Inc. grew its holdings in DraftKings by 101.3% in the second quarter. Pinnacle Bancorp Inc. now owns 1,264 shares of the company's stock valued at $54,000 after purchasing an additional 636 shares during the last quarter. 37.70% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on DKNG shares. Texas Capital upgraded shares of DraftKings to a "hold" rating in a research report on Thursday, January 8th. Wall Street Zen cut shares of DraftKings from a "buy" rating to a "hold" rating in a research report on Friday, October 3rd. Truist Financial lowered their price target on shares of DraftKings from $45.00 to $43.00 and set a "buy" rating on the stock in a research report on Monday, December 22nd. Zacks Research raised shares of DraftKings from a "strong sell" rating to a "hold" rating in a research note on Friday, January 9th. Finally, Barclays reduced their target price on DraftKings from $54.00 to $40.00 and set an "overweight" rating on the stock in a research note on Monday, November 10th. Twenty-five analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, DraftKings currently has a consensus rating of "Moderate Buy" and a consensus target price of $47.07.

DraftKings Stock Performance

Shares of DKNG opened at $35.46 on Friday. DraftKings Inc. has a 1 year low of $26.23 and a 1 year high of $53.61. The company's 50 day simple moving average is $33.38 and its 200 day simple moving average is $38.38. The company has a market capitalization of $17.65 billion, a price-to-earnings ratio of -62.21, a PEG ratio of 0.69 and a beta of 1.63. The company has a debt-to-equity ratio of 2.51, a quick ratio of 1.09 and a current ratio of 1.10.

DraftKings (NASDAQ:DKNG - Get Free Report) last issued its quarterly earnings results on Friday, November 7th. The company reported ($0.26) earnings per share for the quarter, missing the consensus estimate of $0.01 by ($0.27). DraftKings had a negative net margin of 4.90% and a negative return on equity of 22.84%. The business had revenue of $1.14 billion during the quarter, compared to analyst estimates of $1.40 billion. During the same quarter last year, the firm posted ($0.60) earnings per share. The company's revenue was up 4.4% on a year-over-year basis. On average, sell-side analysts predict that DraftKings Inc. will post 0.64 EPS for the current year.

Insiders Place Their Bets

In other news, insider R Stanton Dodge sold 52,777 shares of the stock in a transaction dated Monday, December 1st. The shares were sold at an average price of $33.84, for a total transaction of $1,785,973.68. Following the transaction, the insider directly owned 512,182 shares in the company, valued at $17,332,238.88. This represents a 9.34% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Gregory Westin Wendt bought 10,000 shares of the firm's stock in a transaction that occurred on Tuesday, November 11th. The stock was bought at an average cost of $30.27 per share, for a total transaction of $302,700.00. Following the completion of the transaction, the director directly owned 10,000 shares of the company's stock, valued at approximately $302,700. The trade was a ∞ increase in their position. The SEC filing for this purchase provides additional information. Over the last three months, insiders have sold 113,975 shares of company stock valued at $3,562,653. 51.19% of the stock is owned by corporate insiders.

About DraftKings

DraftKings Inc is a leading digital sports entertainment and gaming company specializing in daily fantasy sports, sports betting and iGaming products. The company provides an integrated platform where users can participate in daily fantasy contests, place wagers on professional sports events, and enjoy a range of online casino-style games. DraftKings' proprietary technology supports real-time odds, live scoring and advanced analytics to enhance the user experience across mobile and desktop applications.

Founded in 2012 by co-founders Jason Robins, Matthew Kalish and Paul Liberman, DraftKings began as a daily fantasy sports provider and rapidly expanded into regulated sports betting following legislative changes in the United States.

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