Hodges Capital Management Inc. increased its holdings in shares of DraftKings Inc. (NASDAQ:DKNG – Free Report) by 25.9% during the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 721,235 shares of the company’s stock after purchasing an additional 148,292 shares during the quarter. DraftKings accounts for 2.1% of Hodges Capital Management Inc.’s portfolio, making the stock its 12th biggest holding. Hodges Capital Management Inc. owned about 0.14% of DraftKings worth $24,854,000 as of its most recent SEC filing.
Other hedge funds and other institutional investors have also recently modified their holdings of the company. Vanguard Group Inc. lifted its holdings in DraftKings by 3.1% in the fourth quarter. Vanguard Group Inc. now owns 44,758,204 shares of the company’s stock valued at $1,542,368,000 after acquiring an additional 1,354,457 shares during the period. Citigroup Inc. lifted its holdings in DraftKings by 40.6% in the third quarter. Citigroup Inc. now owns 1,939,764 shares of the company’s stock valued at $72,547,000 after acquiring an additional 560,139 shares during the period. Bedell Frazier Investment Counselling LLC bought a new position in DraftKings in the third quarter valued at about $4,492,000. Waycross Partners LLC bought a new position in DraftKings in the fourth quarter valued at about $2,584,000. Finally, DAVENPORT & Co LLC lifted its holdings in DraftKings by 11.2% in the fourth quarter. DAVENPORT & Co LLC now owns 3,456,735 shares of the company’s stock valued at $119,602,000 after acquiring an additional 348,333 shares during the period. 37.70% of the stock is owned by institutional investors.
Insider Activity
In related news, Director Jocelyn Moore sold 2,150 shares of the stock in a transaction dated Friday, March 13th. The stock was sold at an average price of $25.60, for a total transaction of $55,040.00. Following the completion of the sale, the director owned 1,406 shares in the company, valued at approximately $35,993.60. This trade represents a 60.46% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Woodrow Levin sold 34,234 shares of the stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $25.71, for a total value of $880,156.14. Following the sale, the director owned 29,820 shares of the company’s stock, valued at $766,672.20. This represents a 53.45% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 37,246 shares of company stock valued at $957,031 in the last quarter. 47.18% of the stock is currently owned by company insiders.
DraftKings Stock Performance
DraftKings (NASDAQ:DKNG – Get Free Report) last released its earnings results on Friday, May 8th. The company reported $0.20 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.22 by ($0.02). DraftKings had a return on equity of 13.51% and a net margin of 0.93%.The business had revenue of $1.65 billion for the quarter, compared to analysts’ expectations of $1.63 billion. During the same quarter in the prior year, the business posted ($0.07) EPS. The business’s revenue for the quarter was up 16.8% compared to the same quarter last year. Equities research analysts forecast that DraftKings Inc. will post 0.6 EPS for the current fiscal year.
DraftKings News Roundup
Here are the key news stories impacting DraftKings this week:
- Positive Sentiment: DraftKings reported rapid growth on its prediction-markets platform, with annualized consumer volume reaching $1.3 billion and total volume climbing to $3.1 billion, fueling optimism about a new growth engine. DraftKings Sees $1.3 Billion in Prediction Market Trading. The Stock Is Soaring.
- Positive Sentiment: Retail traders and options activity accelerated after the update, with call buying signaling expectations for more upside if prediction-market momentum continues. Call Traders Target DraftKings Stock Amid Strong Volume Growth
- Positive Sentiment: UBS reiterated a Buy rating on DraftKings, reinforcing the view that Wall Street is becoming more constructive on the company’s growth outlook. UBS Remains a Buy on DraftKings (DKNG)
- Neutral Sentiment: DraftKings CEO Jason Robins is scheduled to participate in an upcoming investor conference, which could provide more color on strategy but is not itself a major catalyst. DraftKings Announces Jason Robins’ Participation in Upcoming Event
- Neutral Sentiment: DraftKings also had a short-interest filing showing no meaningful short base, which does not appear to be a major driver of the move.
Analysts Set New Price Targets
Several research analysts have recently commented on DKNG shares. Sanford C. Bernstein reaffirmed an “outperform” rating and issued a $30.00 price objective on shares of DraftKings in a research note on Thursday, March 5th. BTIG Research raised their price objective on DraftKings from $28.00 to $30.00 and gave the stock a “buy” rating in a research note on Friday, May 8th. Berenberg Bank set a $26.40 price objective on DraftKings in a research note on Tuesday, February 24th. Canaccord Genuity Group decreased their price objective on DraftKings from $50.00 to $44.00 and set a “buy” rating on the stock in a research note on Friday, February 13th. Finally, Freedom Capital raised DraftKings to a “strong-buy” rating in a research note on Wednesday, May 20th. One investment 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 given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $34.21.
Read Our Latest Stock Report on DKNG
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.
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