Spruce House Investment Management LLC Grows Holdings in DraftKings Inc. $DKNG

Key Points

• Spruce House Investment Management increased its DraftKings stake by 129.6% in the first quarter, buying 5.45 million additional shares and bringing its holdings to 9.65 million shares worth approximately $208.6 million.
• Analysts maintain a generally positive outlook, with DraftKings receiving a consensus “Moderate Buy” rating and an average price target of $34.37; TD Cowen recently raised its target to $35.
• DraftKings reported first-quarter revenue of $1.65 billion, up 16.8% year over year and above estimates, but EPS of $0.20 missed consensus by $0.02. Insiders sold nearly 97,600 shares valued at approximately $2.76 million during the quarter.

Spruce House Investment Management LLC lifted its stake in DraftKings Inc. (NASDAQ:DKNG - Free Report) by 129.6% during the 1st quarter, according to its most recent disclosure with the SEC. The institutional investor owned 9,650,000 shares of the company's stock after buying an additional 5,446,166 shares during the quarter. DraftKings makes up about 7.4% of Spruce House Investment Management LLC's investment portfolio, making the stock its 5th largest position. Spruce House Investment Management LLC owned about 1.95% of DraftKings worth $208,633,000 as of its most recent filing with the SEC.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the stock. Weiss Asset Management LP lifted its stake in DraftKings by 22.6% in the 1st quarter. Weiss Asset Management LP now owns 28,680 shares of the company's stock worth $620,000 after purchasing an additional 5,288 shares in the last quarter. OMERS ADMINISTRATION Corp grew its position in shares of DraftKings by 31.1% during the first quarter. OMERS ADMINISTRATION Corp now owns 20,035 shares of the company's stock valued at $433,000 after purchasing an additional 4,754 shares in the last quarter. Waverly Advisors LLC grew its position in shares of DraftKings by 3.1% during the first quarter. Waverly Advisors LLC now owns 64,557 shares of the company's stock valued at $1,396,000 after purchasing an additional 1,963 shares in the last quarter. Entropy Technologies LP purchased a new position in shares of DraftKings during the first quarter valued at about $2,669,000. Finally, Renaissance Technologies LLC bought a new stake in shares of DraftKings in the first quarter worth about $17,660,000. Institutional investors own 37.70% of the company's stock.

Analyst Ratings Changes

DKNG has been the topic of a number of research analyst reports. Deutsche Bank Aktiengesellschaft boosted their target price on DraftKings from $26.00 to $28.00 and gave the stock a "hold" rating in a research report on Thursday, July 9th. TD Cowen lifted their price objective on DraftKings from $30.00 to $35.00 and gave the stock a "buy" rating in a research note on Friday, July 10th. HSBC raised DraftKings from a "hold" rating to a "hold" rating in a report on Friday, April 24th. Freedom Capital upgraded DraftKings to a "strong-buy" rating in a research report on Wednesday, May 20th. Finally, Stephens started coverage on shares of DraftKings in a report on Friday, April 24th. They issued an "overweight" rating for the company. One investment analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, eight have issued a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $34.37.

DraftKings Stock Performance

DKNG stock opened at $23.01 on Monday. DraftKings Inc. has a 12 month low of $20.46 and a 12 month high of $48.78. The firm's 50-day moving average is $25.66 and its 200 day moving average is $25.68. The company has a market capitalization of $11.42 billion, a PE ratio of 383.50 and a beta of 1.65. The company has a debt-to-equity ratio of 3.03, a current ratio of 1.02 and a quick ratio of 1.02.

DraftKings (NASDAQ:DKNG - Get Free Report) last released its quarterly earnings data on Friday, May 8th. The company reported $0.20 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.22 by ($0.02). The company had revenue of $1.65 billion during the quarter, compared to analysts' expectations of $1.63 billion. DraftKings had a net margin of 0.93% and a return on equity of 13.51%. DraftKings's quarterly revenue was up 16.8% on a year-over-year basis. During the same period last year, the firm earned ($0.07) earnings per share. On average, research analysts anticipate that DraftKings Inc. will post 0.54 EPS for the current year.

Insider Buying and Selling

In related news, Director Woodrow Levin sold 34,234 shares of the business's stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $25.71, for a total value of $880,156.14. Following the completion of the sale, the director owned 29,820 shares in the company, valued at approximately $766,672.20. The trade was a 53.45% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider R Stanton Dodge sold 62,500 shares of the stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $29.68, for a total value of $1,855,000.00. Following the completion of the transaction, the insider directly owned 556,258 shares in the company, valued at approximately $16,509,737.44. This trade represents a 10.10% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 97,596 shares of company stock valued at $2,756,991 in the last quarter. 47.18% of the stock is owned by company insiders.

About DraftKings

DraftKings Inc is a leading digital sports entertainment and gaming company specializing in daily fantasy sports, sports betting and iGaming products. The company provides an integrated platform where users can participate in daily fantasy contests, place wagers on professional sports events, and enjoy a range of online casino-style games. DraftKings' proprietary technology supports real-time odds, live scoring and advanced analytics to enhance the user experience across mobile and desktop applications.

Founded in 2012 by co-founders Jason Robins, Matthew Kalish and Paul Liberman, DraftKings began as a daily fantasy sports provider and rapidly expanded into regulated sports betting following legislative changes in the United States.

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