Park Avenue Securities LLC Reduces Holdings in DraftKings Inc. $DKNG

Key Points

• Park Avenue Securities LLC cut its DraftKings stake by 62.5% in Q4, selling 71,515 shares and retaining 42,849 shares worth about $1.48M.
• Company insiders have been sizable net sellers recently — 549,495 shares were sold in the last 90 days (≈$14.17M), with insiders still owning 47.08% of the stock.
• Analysts are broadly constructive with a consensus rating of “Moderate Buy” and an average target of $37.09, while shares trade near $23 amid mixed catalysts including a potential legislative tailwind and a new NCAA lawsuit.

Park Avenue Securities LLC decreased its position in shares of DraftKings Inc. (NASDAQ:DKNG - Free Report) by 62.5% during the fourth quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 42,849 shares of the company's stock after selling 71,515 shares during the period. Park Avenue Securities LLC's holdings in DraftKings were worth $1,477,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Nordea Investment Management AB lifted its stake in DraftKings by 1,996.2% in the third quarter. Nordea Investment Management AB now owns 421,127 shares of the company's stock worth $16,205,000 after purchasing an additional 401,037 shares during the last quarter. Massachusetts Financial Services Co. MA boosted its position in shares of DraftKings by 1.1% during the third quarter. Massachusetts Financial Services Co. MA now owns 7,473,099 shares of the company's stock valued at $279,494,000 after buying an additional 79,152 shares during the period. Citigroup Inc. grew its stake in shares of DraftKings by 40.6% during the third quarter. Citigroup Inc. now owns 1,939,764 shares of the company's stock valued at $72,547,000 after buying an additional 560,139 shares during the last quarter. Rhumbline Advisers grew its stake in shares of DraftKings by 2.9% during the second quarter. Rhumbline Advisers now owns 603,836 shares of the company's stock valued at $25,898,000 after buying an additional 17,114 shares during the last quarter. Finally, Bedell Frazier Investment Counselling LLC purchased a new stake in shares of DraftKings in the third quarter worth approximately $4,492,000. Hedge funds and other institutional investors own 37.70% of the company's stock.

Insiders Place Their Bets

In other news, Director Jocelyn Moore sold 2,150 shares of the stock in a transaction on Friday, March 13th. The stock was sold at an average price of $25.60, for a total transaction of $55,040.00. Following the transaction, the director owned 1,406 shares of the company's stock, valued at approximately $35,993.60. This represents a 60.46% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider R Stanton Dodge sold 52,777 shares of the firm's stock in a transaction on Tuesday, January 20th. The shares were sold at an average price of $32.01, for a total value of $1,689,391.77. Following the transaction, the insider owned 500,000 shares in the company, valued at approximately $16,005,000. This represents a 9.55% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 549,495 shares of company stock worth $14,166,700. 47.08% of the stock is owned by company insiders.

DraftKings Stock Down 2.7%

Shares of NASDAQ:DKNG opened at $23.31 on Wednesday. The business's 50 day moving average is $26.39 and its 200 day moving average is $32.01. The stock has a market cap of $11.49 billion, a P/E ratio of -582.75, a price-to-earnings-growth ratio of 0.96 and a beta of 1.67. DraftKings Inc. has a 52-week low of $21.01 and a 52-week high of $48.78. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 2.91.

Analysts Set New Price Targets

A number of equities analysts recently issued reports on DKNG shares. Bank of America dropped their price objective on DraftKings from $37.50 to $30.00 and set a "neutral" rating for the company in a report on Friday, February 13th. Berenberg Bank set a $26.40 target price on DraftKings in a research note on Tuesday, February 24th. Canaccord Genuity Group decreased their target price on DraftKings from $50.00 to $44.00 and set a "buy" rating for the company in a research report on Friday, February 13th. Northland Securities set a $24.00 target price on shares of DraftKings in a research note on Tuesday, February 17th. Finally, Citizens Jmp restated a "market outperform" rating and issued a $38.00 price target on shares of DraftKings in a report on Tuesday, March 3rd. Twenty-five research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $37.09.

Key Headlines Impacting DraftKings

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: Legislative tailwind: Senators introduced a bill that would ban sports wagering on prediction‑market platforms, which investors view as removing a disruptive competitor and strengthening DraftKings’ regulatory moat — this was the primary catalyst for last session’s rally. Prediction Market Bill Article
• Positive Sentiment: Analyst support: BTIG reaffirmed a "buy" and set a $35 price target, signaling that at least some sell‑side analysts still see meaningful upside from current levels. BTIG Reaffirmation
• Neutral Sentiment: Industry/feature stories: Multiple pieces (Seeking Alpha, Zacks) profile DraftKings’ “super‑app” strategy and prediction‑platform ambitions — useful background on growth potential but not immediate catalysts. Seeking Alpha Super App Zacks Trending Stock
• Neutral Sentiment: Short‑interest notices appear to contain erroneous/zero values across several feeds (reported as 0 shares / 0 days to cover). No reliable evidence of a new, material short squeeze or meaningful short covering pressure based on the provided data.
• Negative Sentiment: Legal risk: The NCAA has sued DraftKings seeking to block use of "March Madness" trademarks, creating a new litigation headline that could produce legal costs, injunction risk or marketing restrictions around a high‑visibility event. That suit is a near‑term negative for sentiment and adds regulatory/legal uncertainty. NCAA Lawsuit

DraftKings Company Profile

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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