Nuveen LLC Buys New Position in DraftKings Inc. (NASDAQ:DKNG)

Key Points

• Nuveen LLC has taken a new stake in DraftKings Inc., purchasing approximately $107.74 million worth of shares during the first quarter, equating to about 3.24 million shares.
• Analysts have mixed views on DraftKings, with research firms adjusting their target prices; while BTIG lowered its target from $64.00 to $52.00, BMO reaffirmed an "outperform" rating with a target of $65.00.
• DraftKings reported a revenue of $1.51 billion for the last quarter, surpassing analysts' expectations, and boasting a year-over-year revenue increase of 36.9%.

Nuveen LLC acquired a new stake in shares of DraftKings Inc. (NASDAQ:DKNG - Free Report) during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 3,244,172 shares of the company's stock, valued at approximately $107,739,000. Nuveen LLC owned approximately 0.37% of DraftKings as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also made changes to their positions in DKNG. Janus Henderson Group PLC lifted its position in DraftKings by 31,346.8% during the 4th quarter. Janus Henderson Group PLC now owns 9,381,853 shares of the company's stock worth $349,005,000 after acquiring an additional 9,352,019 shares during the period. Baillie Gifford & Co. increased its holdings in shares of DraftKings by 26.5% in the first quarter. Baillie Gifford & Co. now owns 8,390,236 shares of the company's stock valued at $278,640,000 after purchasing an additional 1,756,778 shares during the period. Eminence Capital LP acquired a new position in shares of DraftKings in the fourth quarter valued at about $65,255,000. Fernbridge Capital Management LP purchased a new stake in DraftKings in the fourth quarter valued at approximately $49,220,000. Finally, Anomaly Capital Management LP acquired a new position in DraftKings in the 4th quarter worth approximately $47,725,000. Hedge funds and other institutional investors own 37.70% of the company's stock.

Insider Buying and Selling at DraftKings

In other DraftKings news, Director Jocelyn Moore sold 4,861 shares of DraftKings stock in a transaction on Wednesday, August 13th. The stock was sold at an average price of $43.21, for a total value of $210,043.81. Following the sale, the director owned 1,461 shares in the company, valued at $63,129.81. The trade was a 76.89% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Matthew Kalish sold 210,000 shares of DraftKings 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 completion of the sale, the insider owned 4,190,233 shares in the company, valued at $179,760,995.70. This represents a 4.77% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 640,213 shares of company stock worth $26,574,567 over the last quarter. 51.19% of the stock is currently owned by company insiders.

DraftKings Trading Up 2.9%

Shares of DKNG traded up $1.27 during mid-day trading on Friday, reaching $44.94. The stock had a trading volume of 9,569,503 shares, compared to its average volume of 10,395,182. DraftKings Inc. has a 52-week low of $29.64 and a 52-week high of $53.61. The firm has a market cap of $39.97 billion, a price-to-earnings ratio of -69.14, a P/E/G ratio of 1.26 and a beta of 1.70. The business's fifty day moving average is $42.21 and its 200 day moving average is $39.48. The company has a debt-to-equity ratio of 1.82, a current ratio of 1.34 and a quick ratio of 1.34.

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

Wall Street Analysts Forecast Growth

Several brokerages have commented on DKNG. JMP Securities decreased their price objective on shares of DraftKings from $54.00 to $50.00 and set a "market outperform" rating for the company in a research note on Thursday, June 5th. JPMorgan Chase & Co. assumed coverage on shares of DraftKings in a report on Monday, June 23rd. They issued an "overweight" rating and a $50.00 price target on the stock. Guggenheim cut their price target on DraftKings from $61.00 to $60.00 and set a "buy" rating on the stock in a research report on Monday, May 12th. BTIG Research lowered their target price on DraftKings from $64.00 to $52.00 and set a "buy" rating on the stock in a research note on Tuesday, April 22nd. Finally, Sanford C. Bernstein began coverage on DraftKings in a research report on Wednesday, June 4th. They set an "outperform" rating and a $46.00 price target for the company. Two analysts have rated the stock with a hold rating and twenty-six have issued a buy rating to the stock. According to MarketBeat, DraftKings presently has an average rating of "Moderate Buy" and an average 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.