Renaissance Technologies LLC Buys Shares of 816,815 DraftKings Inc. $DKNG

Renaissance Technologies LLC purchased a new stake in DraftKings Inc. (NASDAQ:DKNG) during the 1st quarter, according to the company in its most recent disclosure with the SEC. The institutional investor purchased 816,815 shares of the company’s stock, valued at approximately $17,660,000. Renaissance Technologies LLC owned about 0.16% of DraftKings as of its most recent SEC filing.

A number of other hedge funds have also modified their holdings of DKNG. Compound Planning Inc. raised its holdings in DraftKings by 42.8% in the 1st quarter. Compound Planning Inc. now owns 86,165 shares of the company’s stock valued at $1,863,000 after buying an additional 25,821 shares during the period. Sei Investments Co. boosted its stake in DraftKings by 260.6% during the first quarter. Sei Investments Co. now owns 387,483 shares of the company’s stock worth $8,377,000 after buying an additional 280,033 shares during the period. State of Wyoming boosted its stake in DraftKings by 564.9% during the first quarter. State of Wyoming now owns 30,758 shares of the company’s stock worth $665,000 after buying an additional 26,132 shares during the period. Mizuho Markets Cayman LP boosted its stake in DraftKings by 84.6% during the first quarter. Mizuho Markets Cayman LP now owns 13,649 shares of the company’s stock worth $295,000 after buying an additional 6,254 shares during the period. Finally, Earned Wealth Advisors LLC acquired a new stake in shares of DraftKings during the first quarter valued at about $211,000. 37.70% of the stock is currently owned by hedge funds and other institutional investors.

DraftKings News Summary

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: Record political spending supports long-term regulatory strategy. DraftKings and other online sportsbooks have committed at least $72 million through a bipartisan super PAC to support candidates favoring their preferred sports-betting regulations. The spending highlights the importance of state-level legalization and rulemaking to DraftKings’ future growth, although it also represents a significant investment with uncertain returns. DraftKings Is Up 7.5% After Record $72 Million Midterm Push For Favorable Betting Rules
• Positive Sentiment: Delta partnership expands consumer reach. DraftKings and Delta Air Lines will offer a free-to-play sports knowledge contest through Delta’s in-flight entertainment. The arrangement does not involve wagering, but it could increase DraftKings’ visibility, user engagement and customer-acquisition opportunities. Delta, DraftKings Partner on Free-to-Play Sports Knowledge Contest
• Neutral Sentiment: Valuation remains contested. Despite a roughly 50% five-year share-price decline, valuation measures do not present DraftKings as an obvious bargain. Investors continue to balance its growth potential against competition, regulatory expenses and profitability risks. DraftKings Stock Still Looks Below Fair Value As Shares Fell 50%
• Negative Sentiment: Analysts are cautious ahead of earnings. Recent previews indicate DraftKings lacks the typical factors associated with an earnings beat, raising concerns about results and guidance in the upcoming report. The company’s last quarterly release also missed consensus EPS estimates despite revenue exceeding expectations, reinforcing investor sensitivity to profitability. Analysts Estimate DraftKings to Report a Decline in Earnings

Insider Activity

In related news, insider R Stanton Dodge sold 62,500 shares of the company’s stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $29.68, for a total value of $1,855,000.00. Following the completion of the transaction, the insider directly owned 556,258 shares of the company’s stock, valued at $16,509,737.44. This represents a 10.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, 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 that occurred on Monday, May 18th. The shares were sold at an average price of $25.71, for a total transaction of $880,156.14. Following the completion of the transaction, the director owned 29,820 shares in the company, valued at $766,672.20. This represents a 53.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 97,596 shares of company stock worth $2,756,991 in the last three months. Corporate insiders own 47.18% of the company’s stock.

DraftKings Stock Performance

NASDAQ:DKNG opened at $23.72 on Friday. DraftKings Inc. has a 12 month low of $20.46 and a 12 month high of $48.78. The company has a debt-to-equity ratio of 3.03, a current ratio of 1.02 and a quick ratio of 1.02. The firm has a market capitalization of $11.77 billion, a PE ratio of 395.33 and a beta of 1.65. The business’s fifty day moving average price is $25.56 and its 200 day moving average price is $25.37.

DraftKings (NASDAQ:DKNG) last announced its quarterly earnings results on Friday, May 8th. The company reported $0.20 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.22 by ($0.02). The business had revenue of $1.65 billion for the quarter, compared to analysts’ expectations of $1.63 billion. DraftKings had a return on equity of 13.51% and a net margin of 0.93%.The firm’s quarterly revenue was up 16.8% on a year-over-year basis. During the same period last year, the firm earned ($0.07) earnings per share. On average, sell-side analysts anticipate that DraftKings Inc. will post 0.54 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

DKNG has been the topic of several recent analyst reports. Zacks Research upgraded shares of DraftKings from a “strong sell” rating to a “hold” rating in a report on Wednesday, May 20th. Benchmark reiterated a “buy” rating on shares of DraftKings in a report on Monday, July 20th. HSBC raised DraftKings from a “hold” rating to a “hold” rating in a research report on Friday, April 24th. TD Cowen raised their price target on DraftKings from $30.00 to $35.00 and gave the stock a “buy” rating in a research report on Friday, July 10th. Finally, Moffett Nathanson cut DraftKings from a “buy” rating to a “neutral” rating and dropped their price objective for the company from $38.00 to $27.00 in a research note on Friday, April 24th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, eight have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $34.37.

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.