Capital Research Global Investors Reduces Stock Holdings in DraftKings Inc. (NASDAQ:DKNG)

Capital Research Global Investors cut its stake in DraftKings Inc. (NASDAQ:DKNG) by 3.2% in the fourth quarter, Holdings Channel.com reports. The fund owned 5,660,781 shares of the company’s stock after selling 185,658 shares during the quarter. Capital Research Global Investors’ holdings in DraftKings were worth $210,581,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other large investors also recently bought and sold shares of the company. Norges Bank acquired a new stake in shares of DraftKings in the 4th quarter valued at about $276,328,000. FMR LLC boosted its holdings in shares of DraftKings by 110.6% in the fourth quarter. FMR LLC now owns 13,617,448 shares of the company’s stock valued at $506,569,000 after acquiring an additional 7,150,382 shares during the period. Baillie Gifford & Co. purchased a new position in shares of DraftKings during the fourth quarter worth approximately $246,765,000. Contrarius Group Holdings Ltd acquired a new position in shares of DraftKings in the 4th quarter valued at $58,397,000. Finally, Massachusetts Financial Services Co. MA raised its position in DraftKings by 18.0% in the 4th quarter. Massachusetts Financial Services Co. MA now owns 6,797,507 shares of the company’s stock valued at $252,867,000 after purchasing an additional 1,036,763 shares during the last quarter. Institutional investors and hedge funds own 37.70% of the company’s stock.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on the stock. Wells Fargo & Company raised their price objective on shares of DraftKings from $53.00 to $60.00 and gave the stock an “overweight” rating in a research report on Tuesday, February 18th. Truist Financial boosted their price target on DraftKings from $50.00 to $60.00 and gave the company a “buy” rating in a research report on Tuesday, February 18th. Barclays increased their price objective on DraftKings from $50.00 to $60.00 and gave the stock an “overweight” rating in a research report on Tuesday, February 18th. JMP Securities set a $57.00 price target on DraftKings in a report on Wednesday, April 2nd. Finally, Guggenheim lowered their price objective on shares of DraftKings from $62.00 to $61.00 and set a “buy” rating on the stock in a research report on Thursday, April 10th. Three investment analysts have rated the stock with a hold rating and twenty-five have given a buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $55.27.

Insiders Place Their Bets

In related news, insider R Stanton Dodge sold 52,777 shares of the firm’s stock in a transaction that occurred on Friday, March 14th. The shares were sold at an average price of $37.62, for a total value of $1,985,470.74. Following the sale, the insider now directly owns 706,620 shares of the company’s stock, valued at approximately $26,583,044.40. This trade represents a 6.95 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Paul Liberman sold 643,654 shares of the business’s stock in a transaction that occurred on Tuesday, March 25th. The shares were sold at an average price of $38.95, for a total transaction of $25,070,323.30. Following the completion of the sale, the insider now owns 682,764 shares of the company’s stock, valued at approximately $26,593,657.80. The trade was a 48.53 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 2,575,525 shares of company stock valued at $109,441,446. Company insiders own 51.19% of the company’s stock.

DraftKings Stock Down 0.0 %

DKNG opened at $33.61 on Monday. The firm has a market cap of $29.68 billion, a P/E ratio of -31.71, a PEG ratio of 1.43 and a beta of 2.16. The business’s fifty day simple moving average is $39.21 and its 200 day simple moving average is $39.70. DraftKings Inc. has a 52 week low of $28.69 and a 52 week high of $53.61. 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 issued its quarterly earnings results on Thursday, February 13th. The company reported ($0.28) EPS for the quarter, missing analysts’ consensus estimates of $0.07 by ($0.35). DraftKings had a negative return on equity of 48.13% and a negative net margin of 10.64%. As a group, equities research analysts anticipate that DraftKings Inc. will post 0.64 EPS for the current fiscal 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.