Fernbridge Capital Management LP Invests $49.22 Million in DraftKings Inc. (NASDAQ:DKNG)

Fernbridge Capital Management LP bought a new stake in DraftKings Inc. (NASDAQ:DKNG) during the fourth quarter, according to its most recent disclosure with the SEC. The firm bought 1,323,130 shares of the company’s stock, valued at approximately $49,220,000. DraftKings comprises about 2.6% of Fernbridge Capital Management LP’s holdings, making the stock its 13th largest position. Fernbridge Capital Management LP owned approximately 0.27% of DraftKings at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently bought and sold shares of DKNG. Vanguard Group Inc. boosted its holdings in shares of DraftKings by 1.4% in the fourth quarter. Vanguard Group Inc. now owns 43,073,314 shares of the company’s stock valued at $1,602,327,000 after acquiring an additional 584,452 shares during the period. T. Rowe Price Investment Management Inc. boosted its stake in DraftKings by 4.0% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 18,569,637 shares of the company’s stock worth $690,791,000 after purchasing an additional 707,504 shares during the period. FMR LLC grew its position in DraftKings by 110.6% during the 4th quarter. FMR LLC now owns 13,617,448 shares of the company’s stock worth $506,569,000 after purchasing an additional 7,150,382 shares during the last quarter. Geode Capital Management LLC increased its stake in DraftKings by 1.1% in the fourth quarter. Geode Capital Management LLC now owns 8,075,009 shares of the company’s stock valued at $299,921,000 after purchasing an additional 89,988 shares during the period. Finally, Norges Bank purchased a new stake in shares of DraftKings in the fourth quarter valued at about $276,328,000. 37.70% of the stock is currently owned by institutional investors and hedge funds.

DraftKings Stock Performance

NASDAQ DKNG opened at $33.79 on Friday. The company has a quick ratio of 1.00, a current ratio of 0.93 and a debt-to-equity ratio of 1.24. DraftKings Inc. has a fifty-two week low of $28.69 and a fifty-two week high of $53.61. The business has a fifty day moving average of $37.56 and a 200-day moving average of $39.53. The stock has a market cap of $29.84 billion, a price-to-earnings ratio of -31.88, a price-to-earnings-growth ratio of 1.43 and a beta of 2.16.

DraftKings (NASDAQ:DKNG) last announced its earnings results on Thursday, February 13th. The company reported ($0.28) earnings per share for the quarter, missing the consensus estimate of $0.07 by ($0.35). DraftKings had a negative net margin of 10.64% and a negative return on equity of 48.13%. As a group, analysts predict that DraftKings Inc. will post 0.64 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on DKNG. Citigroup dropped their price target on DraftKings from $65.00 to $55.00 and set a “buy” rating on the stock in a research report on Friday. Cfra Research raised DraftKings to a “moderate buy” rating in a report on Monday, April 14th. TD Cowen decreased their price target on DraftKings from $55.00 to $51.00 and set a “buy” rating for the company in a report on Tuesday, February 4th. Morgan Stanley boosted their price objective on shares of DraftKings from $49.00 to $53.00 and gave the company an “overweight” rating in a research note on Monday, February 24th. Finally, JMP Securities set a $57.00 target price on shares of DraftKings in a research note on Wednesday, April 2nd. Three research analysts have rated the stock with a hold rating and twenty-six have given a buy rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $54.75.

Insider Buying and Selling at DraftKings

In related news, CFO Alan Wayne Ellingson sold 158,661 shares of the business’s stock in a transaction that occurred on Tuesday, February 25th. The shares were sold at an average price of $42.42, for a total value of $6,730,399.62. Following the completion of the sale, the chief financial officer now directly owns 179,435 shares in the company, valued at approximately $7,611,632.70. The trade was a 46.93 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Jason Robins sold 200,000 shares of the stock in a transaction that occurred on Wednesday, February 12th. The stock was sold at an average price of $45.00, for a total transaction of $9,000,000.00. Following the transaction, the insider now directly owns 2,678,613 shares in the company, valued at approximately $120,537,585. This represents a 6.95 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 2,628,302 shares of company stock worth $111,145,088. Insiders own 51.19% of the company’s stock.

DraftKings Company 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.