StepStone Group LP Reduces Stake in DraftKings Inc. $DKNG

Key Points

• StepStone Group LP reduced its stake in DraftKings Inc. by 33.3% in the first quarter, owning 214,536 shares valued at approximately $7.13 million.
• Institutional investors now own about 37.70% of DraftKings, with notable increases in holdings from firms like Janus Henderson Group and Baillie Gifford.
• DraftKings reported a 36.9% increase in quarterly revenue year-over-year, achieving an EPS of $0.30, surpassing analyst estimates.

StepStone Group LP lessened its position in DraftKings Inc. (NASDAQ:DKNG - Free Report) by 33.3% during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 214,536 shares of the company's stock after selling 107,268 shares during the quarter. DraftKings accounts for approximately 7.3% of StepStone Group LP's portfolio, making the stock its 3rd largest holding. StepStone Group LP's holdings in DraftKings were worth $7,125,000 at the end of the most recent reporting period.

Other large investors have also added to or reduced their stakes in the company. Raiffeisen Bank International AG purchased a new position in shares of DraftKings in the 4th quarter worth about $25,000. FNY Investment Advisers LLC purchased a new stake in DraftKings in the first quarter worth approximately $26,000. Smallwood Wealth Investment Management LLC purchased a new stake in DraftKings in the first quarter worth approximately $27,000. Point72 Asia Singapore Pte. Ltd. bought a new position in DraftKings during the fourth quarter valued at approximately $28,000. Finally, GPS Wealth Strategies Group LLC raised its stake 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 worth $28,000 after acquiring an additional 564 shares in the last quarter. Hedge funds and other institutional investors own 37.70% of the company's stock.

DraftKings Stock Up 0.9%

DraftKings stock traded up $0.43 on Thursday, hitting $48.23. 5,603,095 shares of the stock traded hands, compared to its average volume of 10,231,390. DraftKings Inc. has a 1 year low of $29.64 and a 1 year high of $53.61. The firm has a market cap of $42.90 billion, a P/E ratio of -74.20, a price-to-earnings-growth ratio of 1.13 and a beta of 1.70. 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 business's fifty day simple moving average is $43.80 and its 200 day simple moving average is $39.74.

DraftKings (NASDAQ:DKNG - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The company reported $0.30 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.16 by $0.14. DraftKings had a negative net margin of 5.63% and a negative return on equity of 30.06%. The company had revenue of $1.51 billion during the quarter, compared to analyst estimates of $1.39 billion. During the same period last year, the business earned $0.12 EPS. DraftKings's quarterly revenue was up 36.9% compared to the same quarter last year. DraftKings has set its FY 2025 guidance at EPS. As a group, sell-side analysts forecast that DraftKings Inc. will post 0.64 earnings per share for the current year.

Analyst Ratings Changes

DKNG has been the subject of a number of research reports. Macquarie cut their price objective on shares of DraftKings from $55.00 to $53.00 and set an "outperform" rating for the company in a research note on Monday, May 12th. Jefferies Financial Group set a $54.00 price target on shares of DraftKings in a research report on Thursday, August 21st. Morgan Stanley reiterated an "overweight" rating and issued a $52.00 price objective (up previously from $51.00) on shares of DraftKings in a report on Friday, July 11th. Truist Financial increased their target price on DraftKings from $50.00 to $55.00 and gave the company a "buy" rating in a report on Wednesday, July 16th. Finally, Deutsche Bank Aktiengesellschaft set a $47.00 price target on DraftKings and gave the stock a "hold" rating in a research note on Friday, August 8th. Twenty-five research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $54.50.

Insider Activity

In other news, Director Jocelyn Moore sold 4,861 shares of the business'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 value of $210,043.81. Following the sale, the director directly owned 1,461 shares of the company's stock, valued at $63,129.81. The trade was a 76.89% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Ryan R. Moore sold 76,390 shares of the company's stock in a transaction that occurred on Thursday, August 21st. The stock was sold at an average price of $45.92, for a total value of $3,507,828.80. Following the completion of the sale, the director owned 402 shares in the company, valued at $18,459.84. The trade was a 99.48% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 767,021 shares of company stock valued at $32,338,320. 51.19% of the stock is currently owned by insiders.

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.