Trexquant Investment LP Invests $17.92 Million in DraftKings Inc. $DKNG

Key Points

• Trexquant Investment LP acquired 539,520 shares of DraftKings, valued at approximately $17.9 million, representing about 0.06% of the company's stock as per their latest SEC filing.
• Several institutional investors, including T. Rowe Price and Janus Henderson Group, significantly increased their holdings in DraftKings, indicating strong interest in the company.
• DraftKings reported record quarterly earnings with revenue of $1.51 billion, exceeding analyst expectations and showing a 36.9% increase compared to the previous year.

Trexquant Investment LP bought a new position in shares of DraftKings Inc. (NASDAQ:DKNG - Free Report) in the first quarter, according to the company in its most recent filing with the SEC. The firm bought 539,520 shares of the company's stock, valued at approximately $17,917,000. Trexquant Investment LP owned approximately 0.06% of DraftKings as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also bought and sold shares of DKNG. Raiffeisen Bank International AG bought a new stake in DraftKings during the fourth quarter worth about $25,000. FNY Investment Advisers LLC bought a new stake in DraftKings in the 1st quarter worth approximately $26,000. Smallwood Wealth Investment Management LLC bought a new position in shares of DraftKings during the first quarter valued at approximately $27,000. Point72 Asia Singapore Pte. Ltd. purchased a new stake in shares of DraftKings in the fourth quarter worth $28,000. Finally, GPS Wealth Strategies Group LLC lifted its holdings in DraftKings by 197.9% in the first quarter. GPS Wealth Strategies Group LLC now owns 849 shares of the company's stock valued at $28,000 after acquiring an additional 564 shares during the period. Institutional investors own 37.70% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on the company. Stifel Nicolaus decreased their target price on DraftKings from $53.00 to $51.00 and set a "buy" rating for the company in a research report on Wednesday, July 16th. Jefferies Financial Group set a $54.00 price target on shares of DraftKings in a research report on Thursday, August 21st. Citigroup reiterated a "buy" rating on shares of DraftKings in a research note on Friday, July 11th. Benchmark upped their price objective on shares of DraftKings from $50.00 to $53.00 and gave the stock a "buy" rating in a report on Thursday, August 7th. Finally, JMP Securities dropped their price target on shares of DraftKings from $54.00 to $50.00 and set a "market outperform" rating for the company in a research report on Thursday, June 5th. Twenty-five investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, DraftKings currently has an average rating of "Moderate Buy" and a consensus price target of $54.50.

Insiders Place Their Bets

In other DraftKings news, 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 sale, the director owned 402 shares in the company, valued at $18,459.84. This represents a 99.48% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Matthew Kalish sold 210,000 shares of DraftKings stock in a transaction dated Tuesday, August 12th. The shares were sold at an average price of $42.90, for a total value of $9,009,000.00. Following the transaction, the insider owned 4,190,233 shares of the company's stock, valued at $179,760,995.70. This trade represents a 4.77% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 711,108 shares of company stock worth $30,460,181. 47.08% of the stock is currently owned by insiders.

DraftKings Stock Down 0.3%

Shares of DraftKings stock traded down $0.12 during trading on Tuesday, hitting $47.86. The company's stock had a trading volume of 4,767,779 shares, compared to its average volume of 10,168,402. The company has a debt-to-equity ratio of 1.82, a quick ratio of 1.34 and a current ratio of 1.34. The company has a market capitalization of $42.57 billion, a PE ratio of -73.44, a P/E/G ratio of 1.14 and a beta of 1.73. The company has a fifty day simple moving average of $44.25 and a two-hundred day simple moving average of $39.69. DraftKings Inc. has a 52 week low of $29.64 and a 52 week high of $53.61.

DraftKings (NASDAQ:DKNG - Get Free Report) last posted its quarterly earnings results on Thursday, August 7th. The company reported $0.30 EPS for the quarter, topping analysts' consensus estimates of $0.16 by $0.14. The firm had revenue of $1.51 billion for 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 business's revenue for the quarter was up 36.9% on a year-over-year basis. During the same period in the prior year, the business posted $0.12 earnings per share. DraftKings has set its FY 2025 guidance at EPS. Equities research analysts predict that DraftKings Inc. will post 0.64 earnings per share for the current year.

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.