T. Rowe Price Investment Management Inc. Sells 7,528,503 Shares of DraftKings Inc. $DKNG

Key Points

• T. Rowe Price Investment Management cut its DraftKings stake by 39.9% in the fourth quarter, selling 7.53 million shares and leaving it with 11.34 million shares valued at about $390.7 million.
• Several other large institutions also adjusted holdings, with firms like Vanguard, Janus Henderson, and Capital World Investors increasing their positions; institutional investors and hedge funds now own 37.7% of DraftKings.
• DraftKings has seen notable insider selling, including recent sales by director Woodrow Levin and insider R. Stanton Dodge, while analysts remain mostly positive with a consensus rating of Moderate Buy and an average target price of $34.21.

T. Rowe Price Investment Management Inc. decreased its position in shares of DraftKings Inc. (NASDAQ:DKNG - Free Report) by 39.9% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 11,337,260 shares of the company's stock after selling 7,528,503 shares during the period. T. Rowe Price Investment Management Inc. owned about 2.30% of DraftKings worth $390,682,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors have also added to or reduced their stakes in the company. Vanguard Group Inc. increased its stake in shares of DraftKings by 3.1% in the 4th quarter. Vanguard Group Inc. now owns 44,758,204 shares of the company's stock valued at $1,542,368,000 after purchasing an additional 1,354,457 shares during the last quarter. Janus Henderson Group PLC boosted its stake in DraftKings by 50.8% in the fourth quarter. Janus Henderson Group PLC now owns 25,313,909 shares of the company's stock valued at $858,893,000 after buying an additional 8,524,923 shares in the last quarter. Viking Global Investors LP grew its position in DraftKings by 27.4% in the fourth quarter. Viking Global Investors LP now owns 19,119,912 shares of the company's stock valued at $658,872,000 after acquiring an additional 4,116,561 shares during the last quarter. Capital World Investors grew its position in DraftKings by 181.4% in the fourth quarter. Capital World Investors now owns 18,626,429 shares of the company's stock valued at $641,867,000 after acquiring an additional 12,008,357 shares during the last quarter. Finally, AQR Capital Management LLC raised its stake in DraftKings by 41.0% during the fourth quarter. AQR Capital Management LLC now owns 16,474,009 shares of the company's stock worth $567,694,000 after acquiring an additional 4,788,337 shares in the last quarter. 37.70% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity at DraftKings

In other news, Director Woodrow Levin sold 34,234 shares of the firm's stock in a transaction on Monday, May 18th. The shares were sold at an average price of $25.71, for a total transaction of $880,156.14. Following the completion of the transaction, the director owned 29,820 shares of the company's stock, valued at approximately $766,672.20. This trade represents a 53.45% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider R Stanton Dodge sold 62,500 shares of DraftKings stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $29.68, for a total transaction of $1,855,000.00. Following the transaction, the insider 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 disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 97,596 shares of company stock valued at $2,756,991. Corporate insiders own 47.18% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on DKNG. Benchmark restated a "buy" rating on shares of DraftKings in a research note on Monday, June 1st. Needham & Company LLC reissued a "buy" rating and issued a $35.00 price objective on shares of DraftKings in a research note on Monday, May 11th. Roth Mkm upgraded shares of DraftKings from a "sell" rating to a "buy" rating in a research report on Friday, April 24th. Freedom Capital raised shares of DraftKings to a "strong-buy" rating in a research note on Wednesday, May 20th. Finally, New Street Research set a $29.00 target price on shares of DraftKings in a research note on Monday, June 1st. One analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, eight have assigned a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, DraftKings presently has an average rating of "Moderate Buy" and a consensus target price of $34.21.

DraftKings Stock Performance

NASDAQ:DKNG opened at $26.39 on Friday. The stock has a market cap of $13.09 billion, a P/E ratio of 439.83 and a beta of 1.66. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 3.03. The stock's 50-day moving average is $24.83 and its 200-day moving average is $27.42. DraftKings Inc. has a 1-year low of $20.46 and a 1-year high of $48.78.

DraftKings (NASDAQ:DKNG - Get Free Report) last issued its quarterly earnings data on Friday, May 8th. The company reported $0.20 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.22 by ($0.02). DraftKings had a net margin of 0.93% and a return on equity of 13.51%. The business had revenue of $1.65 billion during the quarter, compared to the consensus estimate of $1.63 billion. During the same quarter last year, the business earned ($0.07) EPS. The firm's quarterly revenue was up 16.8% compared to the same quarter last year. Equities research analysts anticipate that DraftKings Inc. will post 0.6 earnings per share for the current year.

DraftKings Company Profile

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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