DraftKings Inc. $DKNG Shares Sold by Paloma Partners Management Co

Key Points

• Paloma Partners Management Co reduced its stake in DraftKings Inc. by 91.7%, selling 1,747,826 shares during the first quarter, leaving them with 158,596 shares valued at approximately $5.27 million.
• Insider transactions included significant sales by Director Ryan R. Moore, who sold 76,390 shares, and CFO Alan Wayne Ellingson, who sold 44,693 shares, indicating notable insider selling activity in the company.
• DraftKings recently reported a 36.9% year-over-year increase in revenue, with earnings per share of $0.30, exceeding analysts' expectations, while analysts maintain a consensus rating of "Moderate Buy" with a price target of approximately $54.50.

Paloma Partners Management Co cut its holdings in shares of DraftKings Inc. (NASDAQ:DKNG - Free Report) by 91.7% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 158,596 shares of the company's stock after selling 1,747,826 shares during the quarter. Paloma Partners Management Co's holdings in DraftKings were worth $5,267,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also modified their holdings of the business. T. Rowe Price Investment Management Inc. grew its holdings in shares of DraftKings by 0.7% during the 1st quarter. T. Rowe Price Investment Management Inc. now owns 18,700,071 shares of the company's stock worth $621,030,000 after purchasing an additional 130,434 shares during the period. Janus Henderson Group PLC boosted its holdings 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 valued at $349,005,000 after acquiring an additional 9,352,019 shares during the period. Baillie Gifford & Co. boosted its holdings in DraftKings by 26.5% during the 1st quarter. Baillie Gifford & Co. now owns 8,390,236 shares of the company's stock valued at $278,640,000 after acquiring an additional 1,756,778 shares during the period. Massachusetts Financial Services Co. MA boosted its holdings in DraftKings by 4.4% during the 1st quarter. Massachusetts Financial Services Co. MA now owns 7,098,641 shares of the company's stock valued at $235,746,000 after acquiring an additional 301,134 shares during the period. Finally, Whale Rock Capital Management LLC boosted its holdings in DraftKings by 9.2% during the 4th quarter. Whale Rock Capital Management LLC now owns 4,971,886 shares of the company's stock valued at $184,954,000 after acquiring an additional 416,881 shares during the period. 37.70% of the stock is currently owned by hedge funds and other institutional investors.

DraftKings Stock Down 1.8%

Shares of DKNG traded down $0.84 during midday trading on Friday, hitting $46.56. The company had a trading volume of 8,402,464 shares, compared to its average volume of 7,660,442. The company's 50-day simple moving average is $44.63 and its 200-day simple moving average is $39.72. The company has a debt-to-equity ratio of 1.82, a quick ratio of 1.34 and a current ratio of 1.34. The firm has a market capitalization of $41.41 billion, a P/E ratio of -71.63, a P/E/G ratio of 1.12 and a beta of 1.73. DraftKings Inc. has a 1 year low of $29.64 and a 1 year high of $53.61.

DraftKings (NASDAQ:DKNG - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The company reported $0.30 earnings per share (EPS) 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 return on equity of 30.06% and a negative net margin of 5.63%.The business's quarterly revenue was up 36.9% compared to the same quarter last year. During the same quarter last year, the business posted $0.12 EPS. DraftKings has set its FY 2025 guidance at EPS. As a group, sell-side analysts expect that DraftKings Inc. will post 0.64 EPS for the current year.

Insider Buying and Selling at DraftKings

In other news, insider Matthew Kalish sold 210,000 shares of the firm's stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $42.90, for a total transaction of $9,009,000.00. Following the sale, the insider owned 4,190,233 shares of the company's stock, valued at approximately $179,760,995.70. This trade represents a 4.77% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Ryan R. Moore sold 76,390 shares of the firm's stock in a transaction dated Thursday, August 21st. The stock was sold at an average price of $45.92, for a total value of $3,507,828.80. Following the sale, the director directly owned 402 shares in the company, valued at $18,459.84. This trade represents a 99.48% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 816,662 shares of company stock worth $35,460,274. 51.19% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

A number of equities analysts recently commented on DKNG shares. Macquarie lowered their target price on DraftKings from $55.00 to $53.00 and set an "outperform" rating for the company in a report on Monday, May 12th. Guggenheim lowered their target price on DraftKings from $61.00 to $60.00 and set a "buy" rating for the company in a report on Monday, May 12th. Morgan Stanley restated an "overweight" rating and set a $52.00 target price (up from $51.00) on shares of DraftKings in a report on Friday, July 11th. Wall Street Zen cut DraftKings from a "buy" rating to a "hold" rating in a report on Saturday, August 30th. Finally, Bank of America lowered their target price on DraftKings from $60.00 to $50.00 and set a "buy" rating for the company in a report on Friday, May 9th. Twenty-four equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat.com, DraftKings currently has an average rating of "Moderate Buy" and a consensus target price of $54.37.

DraftKings 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.