Tremblant Capital Group Boosts Stock Position in DraftKings Inc. $DKNG

Key Points

• Tremblant Capital Group raised its DraftKings stake 6.6% in Q3 to 628,054 shares (about $23.49M), making DKNG its 20th largest holding and ~0.13% of the fund's portfolio.
• Large investors reshuffled positions—Vanguard, Geode and AQR increased stakes and Norges Bank opened a new ~$362.6M position—while insider activity included CAO Erik Bradbury selling 7,268 shares and director Harry Sloan buying 100,000 shares; insiders now own 51.19% and institutions own 37.7%.
• Analysts maintain a consensus of "Moderate Buy" with an average target of $37.19, versus DKNG trading near $25.87 (market cap ~$12.75B) and a 52-week range of $21.01–$48.78.

Tremblant Capital Group grew its holdings in shares of DraftKings Inc. (NASDAQ:DKNG - Free Report) by 6.6% in the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 628,054 shares of the company's stock after buying an additional 39,087 shares during the period. DraftKings accounts for about 2.4% of Tremblant Capital Group's holdings, making the stock its 20th largest holding. Tremblant Capital Group owned about 0.13% of DraftKings worth $23,489,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also made changes to their positions in DKNG. Vanguard Group Inc. raised its position in shares of DraftKings by 1.6% during the 2nd quarter. Vanguard Group Inc. now owns 43,761,344 shares of the company's stock worth $1,876,924,000 after acquiring an additional 670,884 shares in the last quarter. Geode Capital Management LLC lifted its stake in DraftKings by 5.4% during the second quarter. Geode Capital Management LLC now owns 9,014,088 shares of the company's stock worth $385,552,000 after purchasing an additional 458,452 shares during the last quarter. Norges Bank acquired a new position in DraftKings in the second quarter valued at approximately $362,554,000. Massachusetts Financial Services Co. MA boosted its holdings in DraftKings by 1.1% in the third quarter. Massachusetts Financial Services Co. MA now owns 7,473,099 shares of the company's stock valued at $279,494,000 after purchasing an additional 79,152 shares in the last quarter. Finally, AQR Capital Management LLC increased its stake in DraftKings by 52.2% in the second quarter. AQR Capital Management LLC now owns 7,147,665 shares of the company's stock valued at $306,563,000 after purchasing an additional 2,451,421 shares during the last quarter. 37.70% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling

In other news, CAO Erik Bradbury sold 7,268 shares of the company's stock in a transaction that occurred on Thursday, February 19th. The stock was sold at an average price of $22.50, for a total transaction of $163,530.00. Following the completion of the sale, the chief accounting officer owned 36,736 shares in the company, valued at $826,560. This represents a 16.52% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Harry Sloan purchased 100,000 shares of the firm's stock in a transaction that occurred on Tuesday, February 17th. The shares were bought at an average cost of $21.85 per share, with a total value of $2,185,000.00. Following the completion of the acquisition, the director owned 350,219 shares of the company's stock, valued at approximately $7,652,285.15. This trade represents a 39.96% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last ninety days, insiders sold 547,345 shares of company stock worth $14,111,660. 51.19% of the stock is currently owned by company insiders.

DraftKings Stock Up 1.2%

DKNG opened at $25.87 on Friday. The business has a 50 day moving average price of $27.88 and a two-hundred day moving average price of $33.35. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 2.91. The company has a market cap of $12.75 billion, a PE ratio of -646.75, a P/E/G ratio of 1.05 and a beta of 1.67. DraftKings Inc. has a 52 week low of $21.01 and a 52 week high of $48.78.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on the stock. The Goldman Sachs Group cut their price objective on shares of DraftKings from $54.00 to $31.00 and set a "buy" rating on the stock in a report on Tuesday, February 17th. Rothschild & Co Redburn set a $35.00 target price on shares of DraftKings in a research report on Friday, January 30th. Barclays reiterated an "overweight" rating on shares of DraftKings in a research note on Tuesday, March 3rd. Sanford C. Bernstein reissued an "outperform" rating and issued a $30.00 price target on shares of DraftKings in a research report on Thursday, March 5th. Finally, Needham & Company LLC restated a "buy" rating and issued a $35.00 price objective on shares of DraftKings in a research note on Tuesday, March 3rd. Twenty-five equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $37.19.

DraftKings 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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