Russell Investments Group Ltd. Cuts Stock Position in DraftKings Inc. $DKNG

Key Points

• Russell Investments Group Ltd. significantly reduced its holdings in DraftKings by 87.2% during the first quarter, selling 1,230,377 shares and ending with 180,239 shares valued at approximately $5.99 million.
• Several other institutional investors have increased their stakes in DraftKings, including Brown Advisory Inc. and Allspring Global Investments Holdings LLC, reflecting mixed sentiment in the market.
• DraftKings recently posted a positive quarterly earnings report, exceeding EPS expectations with $1.51 billion in revenue, marking a 36.9% year-over-year increase.

Russell Investments Group Ltd. lowered its stake in DraftKings Inc. (NASDAQ:DKNG - Free Report) by 87.2% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 180,239 shares of the company's stock after selling 1,230,377 shares during the period. Russell Investments Group Ltd.'s holdings in DraftKings were worth $5,986,000 as of its most recent SEC filing.

Several other large investors have also recently modified their holdings of DKNG. Resona Asset Management Co. Ltd. boosted its stake in shares of DraftKings by 3.7% during the first quarter. Resona Asset Management Co. Ltd. now owns 129,846 shares of the company's stock valued at $4,348,000 after purchasing an additional 4,607 shares during the period. HighTower Advisors LLC boosted its stake in shares of DraftKings by 16.1% during the first quarter. HighTower Advisors LLC now owns 193,897 shares of the company's stock valued at $6,439,000 after purchasing an additional 26,841 shares during the period. AGF Management Ltd. purchased a new stake in shares of DraftKings during the first quarter valued at approximately $83,622,000. Independent Advisor Alliance boosted its stake in shares of DraftKings by 3.5% during the first quarter. Independent Advisor Alliance now owns 19,869 shares of the company's stock valued at $660,000 after purchasing an additional 674 shares during the period. Finally, Nuveen LLC purchased a new stake in shares of DraftKings during the first quarter valued at approximately $107,739,000. Hedge funds and other institutional investors own 37.70% of the company's stock.

DraftKings Stock Performance

Shares of DKNG stock traded up $1.09 during midday trading on Friday, reaching $47.18. 6,724,345 shares of the stock were exchanged, compared to its average volume of 10,259,866. DraftKings Inc. has a 1 year low of $29.64 and a 1 year high of $53.61. The company's 50 day moving average is $43.26 and its two-hundred day moving average is $39.64. The company has a quick ratio of 1.34, a current ratio of 1.34 and a debt-to-equity ratio of 1.82.

DraftKings (NASDAQ:DKNG - Get Free Report) last posted its earnings results on Thursday, August 7th. The company reported $0.30 earnings per share for the quarter, topping analysts' consensus estimates of $0.16 by $0.14. DraftKings had a negative return on equity of 30.06% and a negative net margin of 5.63%.The firm had revenue of $1.51 billion for the quarter, compared to the consensus estimate of $1.39 billion. During the same quarter in the prior year, the business earned $0.12 EPS. 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. Research analysts expect that DraftKings Inc. will post 0.64 EPS for the current year.

Analysts Set New Price Targets

A number of analysts have recently weighed in on DKNG shares. Susquehanna reissued a "positive" rating and set a $64.00 price objective on shares of DraftKings in a research note on Friday, August 8th. Northland Securities set a $50.00 price target on DraftKings in a report on Friday, April 25th. Guggenheim reduced their price target on DraftKings from $61.00 to $60.00 and set a "buy" rating on the stock in a report on Monday, May 12th. Bank of America reduced their price target on DraftKings from $60.00 to $50.00 and set a "buy" rating on the stock in a report on Friday, May 9th. Finally, Wall Street Zen upgraded DraftKings from a "hold" rating to a "buy" rating in a report on Saturday, August 9th. Twenty-five investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $54.50.

Insider Transactions at DraftKings

In related news, CFO Alan Wayne Ellingson sold 44,693 shares of the company's stock in a transaction that occurred on Tuesday, August 19th. The stock was sold at an average price of $44.90, for a total value of $2,006,715.70. Following the sale, the chief financial officer owned 128,131 shares in the company, valued at $5,753,081.90. This represents a 25.86% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Matthew Kalish sold 210,000 shares of the company's stock in a transaction that occurred on Tuesday, August 12th. The stock was 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. The trade was a 4.77% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 690,631 shares of company stock worth $28,830,492 over the last quarter. Insiders own 51.19% of the company's stock.

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.