Eminence Capital LP Acquires 2,151,892 Shares of DraftKings Inc. $DKNG

Eminence Capital LP lifted its holdings in DraftKings Inc. (NASDAQ:DKNG) by 34.3% during the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 8,426,755 shares of the company’s stock after purchasing an additional 2,151,892 shares during the period. DraftKings comprises 4.6% of Eminence Capital LP’s holdings, making the stock its 6th biggest holding. Eminence Capital LP owned about 1.69% of DraftKings worth $290,386,000 as of its most recent SEC filing.

Several other hedge funds also recently made changes to their positions in DKNG. Viking Global Investors LP acquired a new position in shares of DraftKings in the 3rd quarter worth approximately $561,125,000. Capital World Investors increased its position in shares of DraftKings by 181.4% in the fourth quarter. Capital World Investors now owns 18,626,429 shares of the company’s stock worth $641,867,000 after acquiring an additional 12,008,357 shares in the last quarter. Norges Bank purchased a new position in shares of DraftKings in the fourth quarter worth approximately $284,466,000. AQR Capital Management LLC increased its position in shares of DraftKings by 41.0% in the fourth quarter. AQR Capital Management LLC now owns 16,474,009 shares of the company’s stock worth $567,694,000 after acquiring an additional 4,788,337 shares in the last quarter. Finally, Cadian Capital Management LP increased its position in shares of DraftKings by 297.8% in the fourth quarter. Cadian Capital Management LP now owns 5,524,221 shares of the company’s stock worth $190,365,000 after acquiring an additional 4,135,461 shares in the last quarter. Institutional investors and hedge funds own 37.70% of the company’s stock.

DraftKings Stock Performance

DKNG stock opened at $26.32 on Thursday. 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 has a market cap of $13.06 billion, a P/E ratio of 438.67 and a beta of 1.66. The firm has a 50 day simple moving average of $24.76 and a 200 day simple moving average of $27.47. DraftKings Inc. has a 52 week low of $20.46 and a 52 week high of $48.78.

DraftKings (NASDAQ:DKNG) last posted its quarterly earnings results on Friday, May 8th. The company reported $0.20 EPS for the quarter, missing the consensus estimate of $0.22 by ($0.02). The company had revenue of $1.65 billion for the quarter, compared to analyst estimates of $1.63 billion. DraftKings had a return on equity of 13.51% and a net margin of 0.93%.The business’s revenue for the quarter was up 16.8% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($0.07) earnings per share. Research analysts anticipate that DraftKings Inc. will post 0.6 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several research analysts have recently weighed in on the stock. BNP Paribas Exane assumed coverage on shares of DraftKings in a research report on Thursday, May 14th. They issued an “underperform” rating and a $20.00 target price on the stock. Citigroup reissued a “market outperform” rating on shares of DraftKings in a research report on Monday, June 1st. BTIG Research lifted their target price on shares of DraftKings from $28.00 to $30.00 and gave the stock a “buy” rating in a research report on Friday, May 8th. Mizuho lifted their target price on shares of DraftKings from $44.00 to $45.00 and gave the stock an “outperform” rating in a research report on Tuesday, May 12th. Finally, Northland Securities set a $27.00 target price on shares of DraftKings in a research report on Monday, May 11th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating, eight have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $34.21.

Insider Activity at DraftKings

In related news, Director Woodrow Levin sold 34,234 shares of the firm’s stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $25.71, for a total transaction of $880,156.14. Following the completion of the sale, the director directly owned 29,820 shares in the company, valued at approximately $766,672.20. This trade represents a 53.45% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider R Stanton Dodge sold 62,500 shares of the firm’s stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $29.68, for a total transaction of $1,855,000.00. Following the sale, the insider owned 556,258 shares of the company’s stock, valued at approximately $16,509,737.44. This represents a 10.10% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 97,596 shares of company stock valued at $2,756,991. 47.18% of the stock is currently 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.