Summit Financial LLC Sells 50,662 Shares of DraftKings Inc. $DKNG

Key Points

• Summit Financial LLC reduced its stake in DraftKings Inc. by 45.6%, now holding 60,491 shares valued at $2,009,000.
• DraftKings posted a record quarterly revenue of $1.51 billion, surpassing estimates and reflecting a 36.9% increase compared to the previous year.
• Several hedge funds have increased their stakes in DraftKings, with T. Rowe Price raising its position by 0.7%, now owning over 18 million shares valued at $621 million.

Summit Financial LLC reduced its holdings in DraftKings Inc. (NASDAQ:DKNG - Free Report) by 45.6% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 60,491 shares of the company's stock after selling 50,662 shares during the period. Summit Financial LLC's holdings in DraftKings were worth $2,009,000 as of its most recent SEC filing.

Several other large investors have also bought and sold shares of DKNG. Brown Advisory Inc. increased its stake in DraftKings by 14.6% in the first quarter. Brown Advisory Inc. now owns 7,600 shares of the company's stock valued at $252,000 after purchasing an additional 968 shares in the last quarter. IFM Investors Pty Ltd increased its stake in DraftKings by 9.3% in the first quarter. IFM Investors Pty Ltd now owns 83,750 shares of the company's stock valued at $2,781,000 after purchasing an additional 7,147 shares in the last quarter. Capital Investment Advisory Services LLC bought a new stake in DraftKings in the first quarter valued at approximately $515,000. Allspring Global Investments Holdings LLC increased its position in shares of DraftKings by 18.9% during the first quarter. Allspring Global Investments Holdings LLC now owns 2,728,482 shares of the company's stock worth $90,558,000 after acquiring an additional 434,525 shares in the last quarter. Finally, Kentucky Retirement Systems bought a new stake in shares of DraftKings during the first quarter worth $1,026,000. 37.70% of the stock is currently owned by institutional investors and hedge funds.

DraftKings Stock Performance

DKNG stock traded up $0.11 during trading hours on Wednesday, reaching $47.82. The stock had a trading volume of 6,920,056 shares, compared to its average volume of 10,240,423. The stock has a market capitalization of $42.53 billion, a PE ratio of -73.57, a price-to-earnings-growth ratio of 1.11 and a beta of 1.70. The company has a debt-to-equity ratio of 1.82, a current ratio of 1.34 and a quick ratio of 1.34. The stock has a 50-day simple moving average of $43.63 and a 200 day simple moving average of $39.69. DraftKings Inc. has a fifty-two week low of $29.64 and a fifty-two week high of $53.61.

DraftKings (NASDAQ:DKNG - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The company reported $0.30 EPS for the quarter, beating analysts' consensus estimates of $0.16 by $0.14. The firm had revenue of $1.51 billion during the quarter, compared to analysts' expectations of $1.39 billion. DraftKings had a negative net margin of 5.63% and a negative return on equity of 30.06%. The company's revenue for the quarter was up 36.9% compared to the same quarter last year. During the same quarter last year, the company posted $0.12 earnings per share. DraftKings has set its FY 2025 guidance at EPS. Analysts predict that DraftKings Inc. will post 0.64 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

DKNG has been the subject of several research reports. Macquarie lowered their price objective on shares of DraftKings from $55.00 to $53.00 and set an "outperform" rating for the company in a research report on Monday, May 12th. JPMorgan Chase & Co. initiated coverage on shares of DraftKings in a research report on Monday, June 23rd. They set an "overweight" rating and a $50.00 price objective for the company. Barclays reissued an "overweight" rating and set a $54.00 price objective (up previously from $51.00) on shares of DraftKings in a research report on Friday, August 8th. Deutsche Bank Aktiengesellschaft set a $47.00 target price on shares of DraftKings and gave the stock a "hold" rating in a report on Friday, August 8th. Finally, Mizuho reduced their target price on shares of DraftKings from $59.00 to $58.00 and set an "outperform" rating for the company in a report on Monday, May 12th. Twenty-five investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $54.50.

Insider Activity at DraftKings

In other news, Director Jocelyn Moore sold 4,861 shares of the firm's stock in a transaction dated Wednesday, August 13th. The shares were sold at an average price of $43.21, for a total transaction of $210,043.81. Following the completion of the sale, the director owned 1,461 shares in the company, valued at approximately $63,129.81. This trade represents a 76.89% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, CFO Alan Wayne Ellingson sold 44,693 shares of the firm's stock in a transaction dated 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 sale, the chief financial officer owned 128,131 shares of the company's stock, valued at approximately $5,753,081.90. This represents a 25.86% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 767,021 shares of company stock worth $32,338,320 in the last quarter. 47.08% of the stock is owned by corporate 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.