Otter Creek Advisors LLC Boosts Holdings in DraftKings Inc. $DKNG

Key Points

• Otter Creek Advisors LLC increased its stake in DraftKings Inc. by 87.3% during the second quarter, now holding a total of 82,644 shares valued at approximately $3.5 million.
• During the latest quarter, DraftKings reported earnings of $0.30 per share, surpassing analysts' expectations of $0.16 and demonstrating a year-over-year revenue growth of 36.9%.
• Insider trading activities showed significant selling, with Director Ryan R. Moore selling 76,390 shares for over $3.5 million, reflecting a 99.48% reduction in his ownership stake.

Otter Creek Advisors LLC raised its stake in shares of DraftKings Inc. (NASDAQ:DKNG - Free Report) by 87.3% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 82,644 shares of the company's stock after purchasing an additional 38,521 shares during the period. DraftKings accounts for 2.5% of Otter Creek Advisors LLC's holdings, making the stock its 23rd biggest position. Otter Creek Advisors LLC's holdings in DraftKings were worth $3,545,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Smallwood Wealth Investment Management LLC acquired a new stake in shares of DraftKings in the first quarter valued at about $27,000. Bank of Jackson Hole Trust acquired a new stake in shares of DraftKings in the first quarter valued at about $31,000. TD Private Client Wealth LLC raised its position in shares of DraftKings by 54.4% in the second quarter. TD Private Client Wealth LLC now owns 800 shares of the company's stock valued at $34,000 after buying an additional 282 shares during the last quarter. Summit Securities Group LLC raised its position in shares of DraftKings by 349.1% in the first quarter. Summit Securities Group LLC now owns 1,042 shares of the company's stock valued at $35,000 after buying an additional 810 shares during the last quarter. Finally, Ameritas Advisory Services LLC acquired a new stake in shares of DraftKings in the second quarter valued at about $48,000. 37.70% of the stock is owned by hedge funds and other institutional investors.

DraftKings Price Performance

Shares of DKNG opened at $34.10 on Friday. 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 $16.93 billion, a PE ratio of -52.46, a P/E/G ratio of 0.88 and a beta of 1.99. The firm has a 50-day simple moving average of $42.18 and a two-hundred day simple moving average of $39.59. 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 announced its quarterly earnings results on Thursday, August 7th. The company reported $0.30 earnings per share 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 business had revenue of $1.51 billion during the quarter, compared to analysts' expectations of $1.39 billion. During the same period last year, the business earned $0.12 earnings per share. The business's revenue for the quarter was up 36.9% on a year-over-year basis. DraftKings has set its FY 2025 guidance at EPS. As a group, analysts forecast that DraftKings Inc. will post 0.64 EPS for the current year.

Insiders Place Their Bets

In other news, Director Ryan R. Moore sold 76,390 shares of the firm's stock in a transaction that occurred on Thursday, August 21st. The shares were sold at an average price of $45.92, for a total value of $3,507,828.80. Following the completion of the transaction, the director owned 402 shares of the company's stock, valued at approximately $18,459.84. This trade represents a 99.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider R Stanton Dodge sold 105,554 shares of the firm's stock in a transaction that occurred on Tuesday, August 5th. The shares were sold at an average price of $44.60, for a total transaction of $4,707,708.40. Following the completion of the transaction, the insider directly 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. In the last quarter, insiders have sold 552,777 shares of company stock valued at $24,690,599. 51.19% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

DKNG has been the subject of a number of recent research reports. Morgan Stanley reiterated an "overweight" rating and issued a $52.00 target price (up from $51.00) on shares of DraftKings in a research report on Friday, July 11th. Mizuho reduced their target price on shares of DraftKings from $58.00 to $54.00 and set an "outperform" rating for the company in a research report on Tuesday, October 7th. JPMorgan Chase & Co. initiated coverage on shares of DraftKings in a research report on Monday, June 23rd. They issued an "overweight" rating and a $50.00 target price for the company. Truist Financial increased their target price on shares of DraftKings from $50.00 to $55.00 and gave the company a "buy" rating in a research report on Wednesday, July 16th. Finally, Oppenheimer cut their price objective on shares of DraftKings from $60.00 to $55.00 and set an "outperform" rating for the company in a research report on Wednesday, October 1st. Twenty-seven investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $53.00.

DraftKings Company Profile

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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