Sculptor Capital LP Makes New Investment in DraftKings Inc. $DKNG

Key Points

• Sculptor Capital LP has acquired a new position in DraftKings Inc., purchasing 785,000 shares valued at approximately $26.07 million, representing a 0.09% ownership stake.
• Multiple institutional investors have increased their holdings in DraftKings, with T. Rowe Price, Janus Henderson Group, and Baillie Gifford significantly boosting their positions.
• DraftKings reported a 36.9% year-over-year increase in quarterly revenue, resulting in earnings per share of $0.30, exceeding analysts' expectations of $0.16.

Sculptor Capital LP acquired a new position in DraftKings Inc. (NASDAQ:DKNG - Free Report) during the 1st quarter, according to its most recent filing with the SEC. The fund acquired 785,000 shares of the company's stock, valued at approximately $26,070,000. Sculptor Capital LP owned approximately 0.09% of DraftKings as of its most recent SEC filing.

Several other institutional investors and hedge funds have also made changes to their positions in DKNG. Dimensional Fund Advisors LP boosted its position in shares of DraftKings by 6.2% in the 4th quarter. Dimensional Fund Advisors LP now owns 1,105,643 shares of the company's stock worth $41,129,000 after buying an additional 64,088 shares in the last quarter. Beacon Pointe Advisors LLC boosted its position in shares of DraftKings by 1.9% in the 4th quarter. Beacon Pointe Advisors LLC now owns 10,699 shares of the company's stock worth $398,000 after buying an additional 203 shares in the last quarter. The Manufacturers Life Insurance Company boosted its position in shares of DraftKings by 2.2% in the 4th quarter. The Manufacturers Life Insurance Company now owns 26,236 shares of the company's stock worth $976,000 after buying an additional 576 shares in the last quarter. Northern Trust Corp boosted its position in shares of DraftKings by 11.7% in the 4th quarter. Northern Trust Corp now owns 2,606,308 shares of the company's stock worth $96,955,000 after buying an additional 272,290 shares in the last quarter. Finally, Lido Advisors LLC boosted its position in shares of DraftKings by 25.2% in the 4th quarter. Lido Advisors LLC now owns 7,037 shares of the company's stock worth $262,000 after buying an additional 1,417 shares in the last quarter. 37.70% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of research analysts have issued reports on the stock. Susquehanna restated a "positive" rating and issued a $64.00 target price on shares of DraftKings in a report on Friday, August 8th. Benchmark upped their target price on shares of DraftKings from $50.00 to $53.00 and gave the company a "buy" rating in a report on Thursday, August 7th. Bank of America reduced their target price on shares of DraftKings from $60.00 to $50.00 and set a "buy" rating on the stock in a report on Friday, May 9th. Needham & Company LLC reiterated a "buy" rating and set a $65.00 price objective on shares of DraftKings in a report on Friday, May 9th. Finally, Citigroup reiterated a "buy" rating on shares of DraftKings in a report on Friday, July 11th. Twenty-five research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $54.50.

DraftKings Stock Down 0.5%

Shares of DraftKings stock traded down $0.23 on Wednesday, hitting $47.68. 5,698,415 shares of the company's stock traded hands, compared to its average volume of 10,151,460. The stock has a market cap of $42.41 billion, a P/E ratio of -73.35, a PEG ratio of 1.14 and a beta of 1.73. The company has a quick ratio of 1.34, a current ratio of 1.34 and a debt-to-equity ratio of 1.82. The firm's 50-day moving average is $44.35 and its 200 day moving average is $39.74. DraftKings Inc. has a 52-week low of $29.64 and a 52-week high of $53.61.

DraftKings (NASDAQ:DKNG - Get Free Report) last released its earnings results on Thursday, August 7th. The company reported $0.30 EPS for the quarter, beating the consensus estimate of $0.16 by $0.14. The company 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 revenue was up 36.9% on a year-over-year basis. During the same period in the prior year, the business posted $0.12 EPS. DraftKings has set its FY 2025 guidance at EPS. Equities analysts anticipate that DraftKings Inc. will post 0.64 earnings per share for the current year.

Insider Activity at DraftKings

In other news, CFO Alan Wayne Ellingson sold 44,693 shares of the stock in a transaction that occurred on Tuesday, August 19th. The stock was sold at an average price of $44.90, for a total transaction of $2,006,715.70. Following the completion of the transaction, the chief financial officer directly owned 128,131 shares in the company, valued at approximately $5,753,081.90. This represents a 25.86% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Jocelyn Moore sold 4,861 shares of DraftKings stock in a transaction 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 completion of the transaction, the director directly owned 1,461 shares of the company's stock, valued at approximately $63,129.81. This represents a 76.89% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 711,108 shares of company stock worth $30,460,181. 47.08% of the stock is currently owned by insiders.

About DraftKings

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.