Clear Street Group Inc. Boosts Stake in DraftKings Inc. $DKNG

Clear Street Group Inc. raised its position in DraftKings Inc. (NASDAQ:DKNG) by 1,068.9% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 198,157 shares of the company’s stock after buying an additional 181,205 shares during the period. Clear Street Group Inc.’s holdings in DraftKings were worth $6,828,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its position in DraftKings by 3.1% in the 4th quarter. Vanguard Group Inc. now owns 44,758,204 shares of the company’s stock valued at $1,542,368,000 after buying an additional 1,354,457 shares during the last quarter. Capital World Investors lifted its position in shares of DraftKings by 181.4% during the fourth quarter. Capital World Investors now owns 18,626,429 shares of the company’s stock worth $641,867,000 after purchasing an additional 12,008,357 shares during the last quarter. Viking Global Investors LP bought a new position in shares of DraftKings during the third quarter worth about $561,125,000. AQR Capital Management LLC lifted its position in shares of DraftKings by 63.5% during the third 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 last quarter. Finally, Geode Capital Management LLC lifted its position in shares of DraftKings by 2.1% during the fourth quarter. Geode Capital Management LLC now owns 9,494,860 shares of the company’s stock worth $326,394,000 after purchasing an additional 192,160 shares during the last quarter. 37.70% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

DKNG has been the topic of several research analyst reports. Truist Financial reduced their price target on shares of DraftKings from $33.00 to $30.00 and set a “buy” rating on the stock in a research report on Tuesday, April 21st. Northland Securities set a $27.00 price target on shares of DraftKings in a research report on Monday, May 11th. Stifel Nicolaus reduced their price target on shares of DraftKings from $44.00 to $40.00 and set a “buy” rating on the stock in a research report on Tuesday, February 17th. New Street Research set a $29.00 price target on shares of DraftKings in a research report on Monday, June 1st. Finally, Sanford C. Bernstein reaffirmed an “outperform” rating on shares of DraftKings in a research report on Thursday. One analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, eight have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, DraftKings currently has an average rating of “Moderate Buy” and an average price target of $34.21.

Insider Activity

In related news, insider R Stanton Dodge sold 62,500 shares of the stock in a transaction dated Thursday, June 11th. The shares were 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 in the company, valued at $16,509,737.44. This represents a 10.10% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 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 transaction of $880,156.14. Following the sale, the director owned 29,820 shares in the company, valued at approximately $766,672.20. This trade represents a 53.45% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 97,596 shares of company stock worth $2,756,991. 47.18% of the stock is owned by company insiders.

DraftKings News Roundup

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: DraftKings is drawing bullish attention after Oppenheimer reiterated a Buy rating, reinforcing optimism around the company’s growth outlook. DraftKings (DKNG) Receives a Buy from Oppenheimer
• Positive Sentiment: Investor enthusiasm picked up after DraftKings disclosed strong growth in its Predictions platform, with May volume reportedly surging and some articles calling it a potential new growth engine for the stock. Why DraftKings (DKNG) Stock Is Up Today
• Positive Sentiment: DraftKings also benefited from World Cup-related optimism, with analysts saying it could be a clear winner as sports betting activity rises during the tournament and marketing spend ramps up. Intel surges on rare double upgrade, DraftKings scores ahead of World Cup
• Positive Sentiment: Unusually heavy call-option buying and a strong weekly rally suggest traders are positioning for additional upside in DKNG. DKNG Bulls Are Eyeing A Breakout After Strongest Weekly Rally In 16 Months
• Neutral Sentiment: Some commentary notes DraftKings’ prediction-market business is growing quickly but is still relatively small versus larger rivals, so the long-term opportunity remains early-stage. DraftKings: Prediction Market Potential Is Becoming Clearer
• Negative Sentiment: JPMorgan cautioned that while May operating data showed progress, it does not yet point to immediate upside, which may temper some of the bullish momentum. DKNG Bulls Are Eyeing A Breakout After Strongest Weekly Rally In 16 Months

DraftKings Price Performance

DKNG opened at $29.00 on Friday. The firm has a market cap of $14.39 billion, a price-to-earnings ratio of 483.33 and a beta of 1.66. DraftKings Inc. has a fifty-two week low of $20.46 and a fifty-two week high of $48.78. The company’s 50-day moving average price is $24.47 and its 200 day moving average price is $27.57. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 3.03.

DraftKings (NASDAQ:DKNG) last released its quarterly earnings data on Friday, May 8th. The company reported $0.20 earnings per share for the quarter, missing the consensus estimate of $0.22 by ($0.02). The business 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%.DraftKings’s revenue was up 16.8% compared to the same quarter last year. During the same quarter last year, the company earned ($0.07) EPS. As a group, sell-side analysts expect that DraftKings Inc. will post 0.6 earnings per share for the current year.

About DraftKings

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.