Ontario Teachers Pension Plan Board Takes $636,000 Position in DraftKings Inc. (NASDAQ:DKNG)

Key Points

• The Ontario Teachers Pension Plan Board has acquired a new stake in DraftKings Inc., purchasing 19,152 shares valued at approximately $636,000.
• Analysts have shown a positive outlook on DraftKings, with a consensus rating of "Moderate Buy" and target prices ranging from $50.00 to $65.00.
• Insider selling has been significant, with insiders selling over 642,000 shares worth approximately $25.5 million in the last three months.

Ontario Teachers Pension Plan Board purchased a new stake in DraftKings Inc. (NASDAQ:DKNG - Free Report) during the first quarter, according to the company in its most recent filing with the SEC. The firm purchased 19,152 shares of the company's stock, valued at approximately $636,000.

A number of other hedge funds also recently made changes to their positions in the stock. Altfest L J & Co. Inc. purchased a new stake in DraftKings during the 1st quarter worth $502,000. Charles Schwab Investment Management Inc. boosted its holdings in shares of DraftKings by 3.5% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 3,355,077 shares of the company's stock valued at $111,422,000 after buying an additional 113,780 shares during the period. Nicholas Hoffman & Company LLC. acquired a new position in shares of DraftKings in the 1st quarter valued at about $332,000. PARUS FINANCE UK Ltd acquired a new position in shares of DraftKings in the 1st quarter valued at about $158,000. Finally, Blair William & Co. IL boosted its holdings in shares of DraftKings by 2,857.0% in the 1st quarter. Blair William & Co. IL now owns 561,854 shares of the company's stock valued at $18,659,000 after buying an additional 542,853 shares during the period. Institutional investors and hedge funds own 37.70% of the company's stock.

Wall Street Analyst Weigh In

DKNG has been the subject of a number of research analyst reports. Cowen reaffirmed a "buy" rating on shares of DraftKings in a research note on Thursday, April 24th. Wall Street Zen upgraded shares of DraftKings from a "hold" rating to a "buy" rating in a report on Saturday. Susquehanna reiterated a "positive" rating and issued a $64.00 target price on shares of DraftKings in a report on Friday. Deutsche Bank Aktiengesellschaft set a $47.00 target price on shares of DraftKings and gave the stock a "hold" rating in a report on Friday, August 8th. Finally, Macquarie cut their price target on shares of DraftKings from $55.00 to $53.00 and set an "outperform" rating on the stock in a report on Monday, May 12th. Two analysts have rated the stock with a hold rating and twenty-six have assigned a buy rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $54.50.

DraftKings Stock Performance

Shares of NASDAQ:DKNG traded up $0.12 on Wednesday, hitting $43.22. The company had a trading volume of 3,710,787 shares, compared to its average volume of 10,390,555. DraftKings Inc. has a 1-year low of $29.64 and a 1-year high of $53.61. The stock has a market cap of $38.43 billion, a price-to-earnings ratio of -66.54, a P/E/G ratio of 1.24 and a beta of 1.70. The stock has a 50 day moving average price of $41.84 and a 200 day moving average price of $39.44. The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 1.82.

DraftKings (NASDAQ:DKNG - Get Free Report) last announced its earnings results 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 net margin of 5.63% and a negative return on equity of 30.06%. 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 posted $0.12 earnings per share. DraftKings's quarterly revenue was up 36.9% on a year-over-year basis. Analysts expect that DraftKings Inc. will post 0.64 EPS for the current year.

Insider Activity

In other DraftKings news, insider R Stanton Dodge sold 158,331 shares of the firm's stock in a transaction dated Wednesday, June 18th. The shares were sold at an average price of $39.00, for a total value of $6,174,909.00. Following the transaction, the insider directly owned 504,381 shares of the company's stock, valued at $19,670,859. This trade represents a 23.89% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Matthew Kalish sold 210,000 shares of the firm's stock in a transaction dated Tuesday, August 12th. The shares were sold at an average price of $42.90, for a total transaction of $9,009,000.00. Following the completion of the transaction, the insider directly owned 4,190,233 shares in the company, valued at approximately $179,760,995.70. This represents a 4.77% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 642,181 shares of company stock valued at $26,615,625 in the last 90 days. 47.08% of the stock is owned by corporate insiders.

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.