Highland Capital Management LLC Makes New Investment in DraftKings Inc. $DKNG

Highland Capital Management LLC acquired a new stake in DraftKings Inc. (NASDAQ:DKNG) in the third quarter, according to the company in its most recent Form 13F filing with the SEC. The fund acquired 31,803 shares of the company’s stock, valued at approximately $1,189,000.

Several other hedge funds also recently made changes to their positions in DKNG. IHT Wealth Management LLC boosted its stake in shares of DraftKings by 4.1% in the second quarter. IHT Wealth Management LLC now owns 6,271 shares of the company’s stock valued at $269,000 after buying an additional 248 shares during the period. TD Private Client Wealth LLC increased its stake in DraftKings by 54.4% during the 2nd quarter. TD Private Client Wealth LLC now owns 800 shares of the company’s stock worth $34,000 after acquiring an additional 282 shares during the period. Farther Finance Advisors LLC raised its holdings in DraftKings by 9.1% in the 2nd quarter. Farther Finance Advisors LLC now owns 3,413 shares of the company’s stock valued at $146,000 after acquiring an additional 286 shares in the last quarter. Valeo Financial Advisors LLC lifted its position in shares of DraftKings by 3.6% during the 2nd quarter. Valeo Financial Advisors LLC now owns 10,009 shares of the company’s stock valued at $429,000 after acquiring an additional 348 shares during the period. Finally, Wealthfront Advisers LLC grew its holdings in shares of DraftKings by 5.1% during the 2nd quarter. Wealthfront Advisers LLC now owns 7,630 shares of the company’s stock worth $327,000 after purchasing an additional 367 shares in the last quarter. 37.70% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

A number of research analysts recently commented on the company. JPMorgan Chase & Co. decreased their price target on DraftKings from $51.00 to $42.00 and set an “overweight” rating on the stock in a research report on Monday, November 10th. JMP Securities decreased their target price on shares of DraftKings from $54.00 to $51.00 and set a “market outperform” rating on the stock in a report on Wednesday, October 1st. BMO Capital Markets dropped their target price on shares of DraftKings from $65.00 to $63.00 and set an “outperform” rating for the company in a research report on Tuesday, November 4th. Weiss Ratings reiterated a “sell (d-)” rating on shares of DraftKings in a research report on Wednesday, October 8th. Finally, Zacks Research cut shares of DraftKings from a “hold” rating to a “strong sell” rating in a research note on Thursday, November 6th. Twenty-five research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $47.07.

DraftKings Stock Up 1.2%

DKNG stock opened at $34.88 on Friday. The firm has a 50-day moving average price of $32.39 and a 200-day moving average price of $38.85. DraftKings Inc. has a 12 month low of $26.23 and a 12 month high of $53.61. The company has a current ratio of 1.10, a quick ratio of 1.09 and a debt-to-equity ratio of 2.51. The stock has a market capitalization of $17.36 billion, a P/E ratio of -61.19, a price-to-earnings-growth ratio of 2.85 and a beta of 1.60.

DraftKings (NASDAQ:DKNG) last released its quarterly earnings data on Friday, November 7th. The company reported ($0.26) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.01 by ($0.27). The company had revenue of $1.14 billion for the quarter, compared to analyst estimates of $1.40 billion. DraftKings had a negative return on equity of 22.84% and a negative net margin of 4.90%.DraftKings’s revenue for the quarter was up 4.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned ($0.60) earnings per share. As a group, equities research analysts anticipate that DraftKings Inc. will post 0.64 EPS for the current fiscal year.

Insider Activity at DraftKings

In other news, Director Gregory Westin Wendt acquired 10,000 shares of DraftKings stock in a transaction that occurred on Tuesday, November 11th. The shares were acquired at an average price of $30.27 per share, for a total transaction of $302,700.00. Following the transaction, the director directly owned 10,000 shares of the company’s stock, valued at approximately $302,700. The trade was a ∞ increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Alan Wayne Ellingson sold 8,421 shares of the company’s stock in a transaction dated Friday, November 14th. The stock was sold at an average price of $29.23, for a total value of $246,145.83. Following the completion of the transaction, the chief financial officer directly owned 126,990 shares of the company’s stock, valued at approximately $3,711,917.70. The trade was a 6.22% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 166,752 shares of company stock valued at $5,387,153 over the last three months. 51.19% of the stock is currently owned by corporate insiders.

DraftKings Company 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.