Shellback Capital LP Purchases 212,500 Shares of DraftKings Inc. $DKNG

Key Points

• Shellback Capital LP increased its stake in DraftKings Inc. by 29.8% in the first quarter, now owning approximately 3.0% of the company, valued at about $30.7 million.
• DraftKings reported a record quarterly revenue of $1.51 billion, surpassing analysts' expectations and achieving an EPS of $0.30 for the quarter.
• Institutional investors now hold 37.70% of DraftKings stock, with several funds increasing their positions significantly in the past quarter.

Shellback Capital LP lifted its holdings in shares of DraftKings Inc. (NASDAQ:DKNG - Free Report) by 29.8% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 925,000 shares of the company's stock after buying an additional 212,500 shares during the quarter. DraftKings makes up approximately 3.0% of Shellback Capital LP's investment portfolio, making the stock its 6th largest position. Shellback Capital LP owned approximately 0.10% of DraftKings worth $30,719,000 as of its most recent SEC filing.

Several other large investors have also made changes to their positions in the business. T. Rowe Price Investment Management Inc. raised its stake in shares of DraftKings by 0.7% during the 1st quarter. T. Rowe Price Investment Management Inc. now owns 18,700,071 shares of the company's stock worth $621,030,000 after buying an additional 130,434 shares during the period. Janus Henderson Group PLC raised its stake in shares of DraftKings by 31,346.8% during the 4th quarter. Janus Henderson Group PLC now owns 9,381,853 shares of the company's stock worth $349,005,000 after buying an additional 9,352,019 shares during the period. Baillie Gifford & Co. raised its stake in shares of DraftKings by 26.5% during the 1st quarter. Baillie Gifford & Co. now owns 8,390,236 shares of the company's stock worth $278,640,000 after buying an additional 1,756,778 shares during the period. Massachusetts Financial Services Co. MA raised its stake in shares of DraftKings by 4.4% during the 1st quarter. Massachusetts Financial Services Co. MA now owns 7,098,641 shares of the company's stock worth $235,746,000 after buying an additional 301,134 shares during the period. Finally, Eminence Capital LP raised its stake in shares of DraftKings by 195.2% during the 1st quarter. Eminence Capital LP now owns 5,178,083 shares of the company's stock worth $171,964,000 after buying an additional 3,423,909 shares during the period. 37.70% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling

In other DraftKings news, insider Matthew Kalish sold 210,000 shares of the company's stock in a transaction 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 directly owned 4,190,233 shares in the company, valued at $179,760,995.70. This represents a 4.77% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Ryan R. Moore sold 76,390 shares of the company's stock in a transaction on Thursday, August 21st. The shares were sold at an average price of $45.92, for a total value of $3,507,828.80. Following the completion of the transaction, the director directly owned 402 shares in the company, valued at approximately $18,459.84. This trade represents a 99.48% decrease in their position. The disclosure for this sale can be found here. Insiders sold 816,662 shares of company stock worth $35,460,274 over the last quarter. Corporate insiders own 51.19% of the company's stock.

DraftKings Trading Down 3.4%

NASDAQ:DKNG traded down $1.57 during trading hours on Friday, hitting $44.30. The company had a trading volume of 8,636,711 shares, compared to its average volume of 10,058,763. The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 1.82. The company has a 50-day moving average of $44.97 and a 200 day moving average of $39.68. The company has a market cap of $21.99 billion, a P/E ratio of -68.16, a P/E/G ratio of 1.08 and a beta of 1.73. DraftKings Inc. has a 1 year low of $29.64 and a 1 year high of $53.61.

DraftKings (NASDAQ:DKNG - Get Free Report) last issued its earnings results on Thursday, August 7th. The company reported $0.30 earnings per share (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 firm's quarterly revenue was up 36.9% on a year-over-year basis. During the same period in the prior year, the business earned $0.12 EPS. DraftKings has set its FY 2025 guidance at EPS. Sell-side analysts expect that DraftKings Inc. will post 0.64 earnings per share for the current year.

Analysts Set New Price Targets

DKNG has been the subject of several research analyst reports. Deutsche Bank Aktiengesellschaft set a $47.00 target price on DraftKings and gave the stock a "hold" rating in a research note on Friday, August 8th. Jefferies Financial Group set a $54.00 price target on DraftKings in a research report on Thursday, August 21st. Wall Street Zen cut DraftKings from a "buy" rating to a "hold" rating in a research report on Saturday, August 30th. Stifel Nicolaus dropped their price target on DraftKings from $53.00 to $51.00 and set a "buy" rating for the company in a research report on Wednesday, July 16th. Finally, Truist Financial boosted their price target on DraftKings from $50.00 to $55.00 and gave the stock a "buy" rating in a research report on Wednesday, July 16th. Twenty-four equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $55.12.

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.