DraftKings Inc. (NASDAQ:DKNG) Stock Position Cut by Virtu Financial LLC

Key Points

• Virtu Financial LLC has reduced its stake in DraftKings Inc. by 18.3%, selling 6,834 shares during the first quarter, leaving it with holdings valued at approximately $1,010,000.
• Several large investors have made changes to their positions in DraftKings, with some purchasing new positions valued between $25,000 and $28,000 in recent quarters.
• DraftKings reported a 36.9% increase in revenue to $1.51 billion for the last quarter, significantly exceeding analyst estimates, while also achieving an EPS of $0.30, beating expectations of $0.16.

Virtu Financial LLC lessened its position in DraftKings Inc. (NASDAQ:DKNG - Free Report) by 18.3% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 30,413 shares of the company's stock after selling 6,834 shares during the period. Virtu Financial LLC's holdings in DraftKings were worth $1,010,000 as of its most recent SEC filing.

A number of other institutional investors have also modified their holdings of DKNG. Townsquare Capital LLC grew its holdings in DraftKings by 10.9% in the first quarter. Townsquare Capital LLC now owns 12,951 shares of the company's stock valued at $430,000 after purchasing an additional 1,275 shares during the period. Swiss National Bank grew its holdings in DraftKings by 0.3% in the first quarter. Swiss National Bank now owns 1,237,764 shares of the company's stock valued at $41,106,000 after purchasing an additional 3,300 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. grew its holdings in DraftKings by 6.8% in the first quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 554,136 shares of the company's stock valued at $18,403,000 after purchasing an additional 35,092 shares during the period. CenterBook Partners LP purchased a new stake in DraftKings in the first quarter valued at approximately $7,767,000. Finally, Ontario Teachers Pension Plan Board purchased a new stake in DraftKings during the first quarter worth approximately $636,000. Institutional investors and hedge funds own 37.70% of the company's stock.

Analysts Set New Price Targets

Several research firms have issued reports on DKNG. Sanford C. Bernstein began coverage on shares of DraftKings in a research note on Wednesday, June 4th. They set an "outperform" rating and a $46.00 price objective for the company. Barclays restated an "overweight" rating and issued a $54.00 target price (up from $51.00) on shares of DraftKings in a research note on Friday, August 8th. BTIG Research decreased their target price on shares of DraftKings from $64.00 to $52.00 and set a "buy" rating for the company in a research note on Tuesday, April 22nd. Truist Financial upped their target price on shares of DraftKings from $50.00 to $55.00 and gave the company a "buy" rating in a research note on Wednesday, July 16th. Finally, JPMorgan Chase & Co. began coverage on shares of DraftKings in a research note on Monday, June 23rd. They issued an "overweight" rating and a $50.00 target price for the company. Two investment analysts have rated the stock with a hold rating and twenty-six have assigned a buy rating to the company. According to data from MarketBeat.com, DraftKings currently has a consensus rating of "Moderate Buy" and an average target price of $54.50.

DraftKings Stock Performance

Shares of NASDAQ:DKNG traded up $0.06 on Wednesday, reaching $43.16. 8,357,477 shares of the company's stock were exchanged, compared to its average volume of 9,652,705. The firm has a market capitalization of $38.38 billion, a price-to-earnings ratio of -66.40, a PEG ratio of 1.26 and a beta of 1.70. DraftKings Inc. has a fifty-two week low of $29.64 and a fifty-two week high of $53.61. The business's 50-day moving average is $42.01 and its two-hundred day moving average is $39.46. The company has a quick ratio of 1.34, a current ratio of 1.34 and a debt-to-equity ratio of 1.82.

DraftKings (NASDAQ:DKNG - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. The company reported $0.30 earnings per share for the quarter, topping analysts' consensus estimates 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 business had revenue of $1.51 billion for the quarter, compared to analysts' expectations of $1.39 billion. During the same quarter last year, the company earned $0.12 EPS. The company's revenue for the quarter was up 36.9% compared to the same quarter last year. As a group, equities research analysts forecast that DraftKings Inc. will post 0.64 EPS for the current year.

Insider Activity

In related news, insider R Stanton Dodge sold 105,554 shares of the stock in a transaction dated Tuesday, August 5th. The shares were sold at an average price of $44.60, for a total value of $4,707,708.40. Following the sale, the insider owned 500,000 shares of the company's stock, valued at $22,300,000. This trade represents a 17.43% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Alan Wayne Ellingson sold 6,829 shares of the stock in a transaction dated Friday, May 16th. The stock was sold at an average price of $36.77, for a total transaction of $251,102.33. Following the completion of the sale, the chief financial officer directly owned 171,268 shares in the company, valued at approximately $6,297,524.36. This trade represents a 3.83% decrease in their position. The disclosure for this sale can be found here. Insiders sold 642,181 shares of company stock worth $26,615,625 in the last 90 days. 51.19% of the stock is currently owned by insiders.

About DraftKings

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.