DraftKings Inc. (NASDAQ:DKNG) CFO Alan Wayne Ellingson Sells 5,725 Shares

Key Points

• DraftKings CFO Alan Wayne Ellingson sold 5,725 shares at an average price of $43.53, reducing his stake by 3.21% to 172,824 shares valued at approximately $7.5 million.
• The company's stock recently traded at $44.94 per share, with a market capitalization of $39.97 billion and a P/E ratio of -69.14.
• DraftKings reported a 36.9% year-over-year increase in quarterly revenue, posting $1.51 billion and earnings per share of $0.30, surpassing expectations.

DraftKings Inc. (NASDAQ:DKNG - Get Free Report) CFO Alan Wayne Ellingson sold 5,725 shares of the company's stock in a transaction on Friday, August 15th. The shares were sold at an average price of $43.53, for a total transaction of $249,209.25. Following the completion of the sale, the chief financial officer directly owned 172,824 shares in the company, valued at $7,523,028.72. This trade represents a 3.21% 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.

DraftKings Trading Up 1.7%

Shares of DraftKings stock traded up $0.76 during mid-day trading on Monday, hitting $45.70. 11,725,568 shares of the stock were exchanged, compared to its average volume of 10,404,015. DraftKings Inc. has a twelve month low of $29.64 and a twelve month high of $53.61. The stock has a market capitalization of $40.65 billion, a price-to-earnings ratio of -70.31, a price-to-earnings-growth ratio of 1.07 and a beta of 1.70. The company has a 50-day simple moving average of $42.39 and a 200 day simple moving average of $39.46. The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 1.82.

DraftKings (NASDAQ:DKNG - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The company reported $0.30 earnings per share for the quarter, topping the consensus estimate of $0.16 by $0.14. The business had revenue of $1.51 billion for the quarter, compared to analyst estimates 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 was up 36.9% on a year-over-year basis. During the same period in the prior year, the firm posted $0.12 EPS. Research analysts forecast that DraftKings Inc. will post 0.64 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of DKNG. Janus Henderson Group PLC boosted its holdings in DraftKings by 31,346.8% in the fourth quarter. Janus Henderson Group PLC now owns 9,381,853 shares of the company's stock worth $349,005,000 after purchasing an additional 9,352,019 shares during the period. Norges Bank acquired a new stake in DraftKings in the second quarter worth about $362,554,000. AQR Capital Management LLC lifted its holdings in DraftKings by 2,138.9% in the first quarter. AQR Capital Management LLC now owns 4,696,244 shares of the company's stock worth $155,962,000 after purchasing an additional 4,486,488 shares during the period. Brown Advisory Inc. lifted its holdings in DraftKings by 53,272.1% in the second quarter. Brown Advisory Inc. now owns 4,056,280 shares of the company's stock worth $173,974,000 after purchasing an additional 4,048,680 shares during the period. Finally, Eminence Capital LP lifted its holdings in DraftKings by 195.2% in the first quarter. Eminence Capital LP now owns 5,178,083 shares of the company's stock worth $171,964,000 after purchasing an additional 3,423,909 shares during the period. Hedge funds and other institutional investors own 37.70% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on the stock. Bank of America decreased their price objective on shares of DraftKings from $60.00 to $50.00 and set a "buy" rating on the stock in a report on Friday, May 9th. JMP Securities decreased their price objective on shares of DraftKings from $54.00 to $50.00 and set a "market outperform" rating on the stock in a report on Thursday, June 5th. Stifel Nicolaus reduced their target price on shares of DraftKings from $53.00 to $51.00 and set a "buy" rating for the company in a research report on Wednesday, July 16th. Truist Financial raised their price objective on shares of DraftKings from $50.00 to $55.00 and gave the stock a "buy" rating in a research report on Wednesday, July 16th. Finally, Morgan Stanley restated an "overweight" rating and set a $52.00 price objective (up from $51.00) on shares of DraftKings in a research report on Friday, July 11th. Two research analysts have rated the stock with a hold rating and twenty-six have assigned a buy rating to the stock. Based on data from MarketBeat, DraftKings has an average rating of "Moderate Buy" and an average price target of $54.50.

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.