Secure Asset Management LLC Buys New Holdings in DraftKings Inc. $DKNG

Key Points

• Secure Asset Management LLC acquired 222,295 DraftKings shares during the third quarter, valued at approximately $4.2 million. Institutional investors collectively own 37.7% of the company.
• DraftKings exceeded quarterly EPS expectations, reporting $0.09 versus the $0.02 consensus estimate, but revenue of $1.44 billion missed forecasts and declined 4.6% year over year.
• Analyst sentiment remains moderately bullish, with an average price target of $33.58 and 30 Buy ratings, though several firms recently lowered their targets. DraftKings shares opened at $19.77, near their 12-month low of $18.35.

Secure Asset Management LLC bought a new position in DraftKings Inc. (NASDAQ:DKNG - Free Report) during the 3rd quarter, according to its most recent filing with the Securities & Exchange Commission. The firm bought 222,295 shares of the company's stock, valued at approximately $4,224,000.

A number of other hedge funds and other institutional investors also recently made changes to their positions in DKNG. Janus Henderson Group PLC increased its position in shares of DraftKings by 9.3% in the 1st quarter. Janus Henderson Group PLC now owns 27,665,699 shares of the company's stock valued at $588,288,000 after buying an additional 2,351,790 shares in the last quarter. Spruce House Investment Management LLC raised its stake in DraftKings by 129.6% during the 1st quarter. Spruce House Investment Management LLC now owns 9,650,000 shares of the company's stock worth $208,633,000 after buying an additional 5,446,166 shares during the period. Swiss National Bank raised its stake in DraftKings by 7.4% during the 1st quarter. Swiss National Bank now owns 1,314,864 shares of the company's stock worth $28,427,000 after buying an additional 90,400 shares during the period. Bank of New York Mellon Corp bought a new position in DraftKings during the second quarter worth about $24,014,000. Finally, Quantinno Capital Management LP lifted its holdings in DraftKings by 273.9% during the first quarter. Quantinno Capital Management LP now owns 898,241 shares of the company's stock worth $19,420,000 after acquiring an additional 658,006 shares in the last quarter. 37.70% of the stock is owned by institutional investors.

Insider Activity

In related news, Director Jocelyn Moore sold 10,759 shares of DraftKings stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $24.05, for a total value of $258,753.95. Following the sale, the director owned 1,881 shares of the company's stock, valued at approximately $45,238.05. The trade was a 85.12% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 47.18% of the company's stock.

DraftKings Stock Up 4.6%

Shares of NASDAQ:DKNG opened at $19.77 on Tuesday. The company's fifty day simple moving average is $22.65 and its 200 day simple moving average is $23.97. DraftKings Inc. has a 12 month low of $18.35 and a 12 month high of $36.98. The company has a debt-to-equity ratio of 3.22, a quick ratio of 1.02 and a current ratio of 1.02.

DraftKings (NASDAQ:DKNG - Get Free Report) last announced its earnings results on Friday, August 7th. The company reported $0.09 EPS for the quarter, topping the consensus estimate of $0.02 by $0.07. DraftKings had a negative net margin of 2.68% and a negative return on equity of 11.26%. The business had revenue of $1.44 billion during the quarter, compared to analysts' expectations of $1.51 billion. During the same quarter in the prior year, the company posted $0.30 earnings per share. The firm's revenue was down 4.6% on a year-over-year basis. As a group, equities research analysts predict that DraftKings Inc. will post 0.40 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on DKNG. Citigroup decreased their target price on DraftKings from $32.00 to $28.00 and set a "buy" rating for the company in a research note on Monday, October 12th. Guggenheim dropped their price target on DraftKings from $33.00 to $30.00 and set a "buy" rating on the stock in a research report on Wednesday, October 7th. Zacks Research lowered DraftKings from a "hold" rating to a "strong sell" rating in a research report on Tuesday, October 13th. Moffett Nathanson cut their price objective on DraftKings from $27.00 to $25.00 in a report on Wednesday, July 15th. Finally, Stifel Nicolaus decreased their price objective on DraftKings from $40.00 to $38.00 and set a "buy" rating for the company in a research report on Wednesday, July 22nd. One investment analyst has rated the stock with a Strong Buy rating, thirty have assigned a Buy rating, six have issued a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $33.58.

DraftKings Profile

DraftKings Inc is a digital sports entertainment and gaming company that operates online and mobile platforms for sports betting, casino gaming and daily fantasy sports. Its offerings include the DraftKings Sportsbook, DraftKings Casino and daily fantasy contests covering a range of professional and collegiate sports.

The company also provides related entertainment and media content through DraftKings Network, along with free-to-play games, promotions and other interactive products designed to complement its sports and gaming platforms.

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