SCS Capital Management LLC Takes $309,000 Position in DraftKings Inc. $DKNG

Key Points

• SCS Capital Management LLC acquired a stake in DraftKings Inc. worth approximately $309,000, purchasing 9,316 shares of the company.
• Insider transactions include R Stanton Dodge selling 105,554 shares for over $5 million, reducing their stake by 17.09%.
• Analysts have mixed ratings on DraftKings, with a consensus rating of "Moderate Buy" and an average price target of $55.12.

SCS Capital Management LLC acquired a new stake in shares of DraftKings Inc. (NASDAQ:DKNG - Free Report) during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 9,316 shares of the company's stock, valued at approximately $309,000.

Other hedge funds have also recently modified their holdings of the company. Raiffeisen Bank International AG acquired a new position in shares of DraftKings during the fourth quarter valued at about $25,000. FNY Investment Advisers LLC acquired a new position in shares of DraftKings during the first quarter valued at about $26,000. Smallwood Wealth Investment Management LLC acquired a new position in shares of DraftKings during the first quarter valued at about $27,000. Point72 Asia Singapore Pte. Ltd. acquired a new position in shares of DraftKings during the fourth quarter valued at about $28,000. Finally, GPS Wealth Strategies Group LLC increased its holdings in shares of DraftKings by 197.9% during the first quarter. GPS Wealth Strategies Group LLC now owns 849 shares of the company's stock valued at $28,000 after acquiring an additional 564 shares in the last quarter. Institutional investors and hedge funds own 37.70% of the company's stock.

Insider Buying and Selling at DraftKings

In other news, insider R Stanton Dodge sold 105,554 shares of the firm's stock in a transaction that occurred on Tuesday, September 2nd. The shares were sold at an average price of $47.37, for a total transaction of $5,000,092.98. Following the sale, the insider owned 512,181 shares of the company's stock, valued at $24,262,013.97. This trade represents a 17.09% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Jocelyn Moore sold 4,861 shares of the firm's stock in a transaction that occurred on Wednesday, August 13th. The stock was sold at an average price of $43.21, for a total transaction of $210,043.81. Following the sale, the director directly owned 1,461 shares in the company, valued at $63,129.81. The trade was a 76.89% decrease in their position. The disclosure for this sale can be found here. Over 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 insiders.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on DKNG shares. Jefferies Financial Group set a $54.00 price target on shares of DraftKings in a report on Thursday, August 21st. JMP Securities cut their price target on shares of DraftKings from $54.00 to $50.00 and set a "market outperform" rating on the stock in a report on Thursday, June 5th. Truist Financial increased their price target on shares of DraftKings from $50.00 to $55.00 and gave the stock a "buy" rating in a report on Wednesday, July 16th. Wall Street Zen downgraded shares of DraftKings from a "buy" rating to a "hold" rating in a report on Saturday, August 30th. Finally, Deutsche Bank Aktiengesellschaft set a $47.00 price target on shares of DraftKings and gave the stock a "hold" rating in a report on Friday, August 8th. Twenty-four investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat.com, DraftKings currently has a consensus rating of "Moderate Buy" and an average price target of $55.12.

DraftKings Price Performance

Shares of NASDAQ DKNG opened at $45.87 on Friday. The stock has a market capitalization of $22.77 billion, a price-to-earnings ratio of -70.57, a PEG ratio of 1.08 and a beta of 1.73. DraftKings Inc. has a 12 month low of $29.64 and a 12 month high of $53.61. The firm's 50 day simple moving average is $44.97 and its 200-day simple moving average is $39.68. 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 issued its quarterly earnings data on Thursday, August 7th. The company reported $0.30 EPS for the quarter, topping analysts' consensus estimates of $0.16 by $0.14. The business had revenue of $1.51 billion for the quarter, compared to analysts' expectations of $1.39 billion. DraftKings had a negative net margin of 5.63% and a negative return on equity of 30.06%. The business's revenue was up 36.9% on a year-over-year basis. During the same quarter last year, the company earned $0.12 EPS. DraftKings has set its FY 2025 guidance at EPS. Analysts expect that DraftKings Inc. will post 0.64 EPS for the current year.

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.

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