Fred Alger Management LLC Cuts Position in DraftKings Inc. (NASDAQ:DKNG)

Fred Alger Management LLC reduced its position in shares of DraftKings Inc. (NASDAQ:DKNG) by 61.6% in the fourth quarter, Holdings Channel reports. The fund owned 1,783,698 shares of the company’s stock after selling 2,860,154 shares during the quarter. Fred Alger Management LLC’s holdings in DraftKings were worth $66,354,000 at the end of the most recent reporting period.

Several other large investors also recently bought and sold shares of DKNG. Beacon Pointe Advisors LLC grew its stake in shares of DraftKings by 1.9% in the 4th quarter. Beacon Pointe Advisors LLC now owns 10,699 shares of the company’s stock worth $398,000 after buying an additional 203 shares in the last quarter. Claro Advisors LLC raised its position in DraftKings by 1.5% during the fourth quarter. Claro Advisors LLC now owns 18,093 shares of the company’s stock valued at $673,000 after purchasing an additional 264 shares during the period. Allworth Financial LP lifted its stake in shares of DraftKings by 8.0% in the 4th quarter. Allworth Financial LP now owns 3,659 shares of the company’s stock valued at $150,000 after purchasing an additional 271 shares during the last quarter. Westside Investment Management Inc. increased its position in shares of DraftKings by 0.6% during the 4th quarter. Westside Investment Management Inc. now owns 45,118 shares of the company’s stock valued at $1,678,000 after purchasing an additional 288 shares during the last quarter. Finally, Nvwm LLC lifted its position in DraftKings by 1.6% in the fourth quarter. Nvwm LLC now owns 19,343 shares of the company’s stock worth $720,000 after buying an additional 312 shares during the last quarter. Institutional investors own 37.70% of the company’s stock.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on DKNG. Morgan Stanley raised their target price on shares of DraftKings from $49.00 to $53.00 and gave the stock an “overweight” rating in a report on Monday, February 24th. Citigroup reduced their price target on DraftKings from $65.00 to $55.00 and set a “buy” rating on the stock in a report on Friday, April 25th. Mizuho cut their price objective on DraftKings from $62.00 to $59.00 and set an “outperform” rating on the stock in a research report on Monday, April 28th. Susquehanna lowered their target price on shares of DraftKings from $56.00 to $54.00 and set a “positive” rating for the company in a research note on Wednesday, January 8th. Finally, Piper Sandler reissued an “overweight” rating and issued a $60.00 price objective (up from $48.00) on shares of DraftKings in a research report on Tuesday, February 18th. Two investment analysts have rated the stock with a hold rating and twenty-six have issued a buy rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $55.18.

Insider Transactions at DraftKings

In related news, CFO Alan Wayne Ellingson sold 158,661 shares of DraftKings stock in a transaction on Tuesday, February 25th. The stock was sold at an average price of $42.42, for a total value of $6,730,399.62. Following the completion of the transaction, the chief financial officer now directly owns 179,435 shares in the company, valued at approximately $7,611,632.70. This trade represents a 46.93 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Jason Robins sold 200,000 shares of the company’s stock in a transaction dated Wednesday, February 12th. The stock was sold at an average price of $45.00, for a total value of $9,000,000.00. Following the sale, the insider now owns 2,678,613 shares in the company, valued at approximately $120,537,585. This trade represents a 6.95 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 2,681,079 shares of company stock valued at $112,941,617. 51.19% of the stock is currently owned by corporate insiders.

DraftKings Stock Up 3.0 %

Shares of NASDAQ DKNG opened at $34.60 on Thursday. DraftKings Inc. has a 52-week low of $28.69 and a 52-week high of $53.61. The business’s 50 day moving average is $35.70 and its two-hundred day moving average is $39.29. The firm has a market cap of $30.55 billion, a price-to-earnings ratio of -32.64, a PEG ratio of 1.43 and a beta of 1.89. 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 (NASDAQ:DKNG) last posted its quarterly earnings data on Thursday, February 13th. The company reported ($0.28) earnings per share (EPS) 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%. Research analysts predict that DraftKings Inc. will post 0.64 EPS for the current year.

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.