DraftKings Inc. $DKNG Shares Bought by Capital World Investors

Capital World Investors grew its holdings in shares of DraftKings Inc. (NASDAQ:DKNG) by 181.4% during the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 18,626,429 shares of the company’s stock after purchasing an additional 12,008,357 shares during the period. Capital World Investors’ holdings in DraftKings were worth $641,867,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in DKNG. Viking Global Investors LP acquired a new position in DraftKings during the 3rd quarter worth approximately $561,125,000. Norges Bank acquired a new position in DraftKings during the 4th quarter worth approximately $284,466,000. AQR Capital Management LLC increased its position in DraftKings by 63.5% during the 3rd quarter. AQR Capital Management LLC now owns 11,685,672 shares of the company’s stock worth $437,044,000 after purchasing an additional 4,538,007 shares during the period. Capital Research Global Investors increased its position in DraftKings by 55.9% during the 4th quarter. Capital Research Global Investors now owns 6,615,721 shares of the company’s stock worth $227,978,000 after purchasing an additional 2,372,520 shares during the period. Finally, Eminence Capital LP increased its position in DraftKings by 31.9% during the 3rd quarter. Eminence Capital LP now owns 6,274,863 shares of the company’s stock worth $234,680,000 after purchasing an additional 1,517,413 shares during the period. Institutional investors and hedge funds own 37.70% of the company’s stock.

DraftKings Price Performance

DKNG stock opened at $24.93 on Monday. DraftKings Inc. has a 1 year low of $20.46 and a 1 year high of $48.78. The company has a debt-to-equity ratio of 3.03, a quick ratio of 1.02 and a current ratio of 1.02. The stock’s 50 day moving average price is $23.80 and its 200 day moving average price is $27.60. The firm has a market cap of $12.37 billion, a P/E ratio of 415.50 and a beta of 1.66.

DraftKings (NASDAQ:DKNG) last posted its earnings results 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 company had revenue of $1.65 billion during the quarter, compared to analysts’ expectations of $1.63 billion. During the same period in the previous year, the company posted ($0.07) EPS. DraftKings’s quarterly revenue was up 16.8% compared to the same quarter last year. On average, sell-side analysts expect that DraftKings Inc. will post 0.6 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on the company. BNP Paribas Exane started coverage on DraftKings in a research report on Thursday, May 14th. They set an “underperform” rating and a $20.00 target price on the stock. UBS Group upped their price target on DraftKings from $43.00 to $49.00 and gave the stock a “buy” rating in a report on Friday. Oppenheimer lowered their price target on DraftKings from $50.00 to $35.00 and set an “outperform” rating on the stock in a report on Tuesday, February 17th. Jefferies Financial Group cut DraftKings from a “buy” rating to a “hold” rating in a report on Friday, April 24th. Finally, Raymond James Financial upgraded DraftKings from a “market perform” rating to an “outperform” rating in a report on Friday, April 24th. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $34.35.

Insider Activity at DraftKings

In related news, Director Jocelyn Moore sold 2,150 shares of the company’s stock in a transaction that occurred on Friday, March 13th. The stock was sold at an average price of $25.60, for a total value of $55,040.00. Following the sale, the director owned 1,406 shares of the company’s stock, valued at approximately $35,993.60. This represents a 60.46% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Woodrow Levin sold 34,234 shares of the stock in a transaction on Monday, May 18th. The stock was sold at an average price of $25.71, for a total value of $880,156.14. Following the transaction, the director directly owned 29,820 shares in the company, valued at approximately $766,672.20. This represents a 53.45% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 521,663 shares of company stock valued at $13,144,962. 47.18% of the stock is owned by corporate insiders.

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.