The Vanguard Group, Inc. recently announced the acquisition of new stake in DraftKings Inc. (NASDAQ:DKNG). The institutional investor has increased its shareholding in the Consumer Cyclical company by 0.36% to 36.48 million shares with purchase of 0.13 million shares. This fresh investment now brings its stake to 7.83% valued currently at $1.4 billion. In addition, BlackRock Fund Advisors raised its holdings by 0.41 million to 16.42 million shares.
With over 11.67 million DraftKings Inc. (DKNG) shares trading Tuesday and a closing price of $33.58 on the day, the dollar volume was approximately $392.03 million. The shares have shown a positive half year performance of 27.92% and its price on 01/02/24 lost nearly -4.74%. Currently, there are 450.57M common shares owned by the public and among those 444.52M shares have been available to trade.
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Insiders at the company have transacted a total of 315 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 160 of these insider trades were purchases, accounting for 6,191,181 shares. Insider sales of the common stock occurred on 155 occasions, with total insider shares sold totaling 7,673,449 shares.
The top 3 mutual fund holders in DraftKings Inc. are Vanguard Total Stock Market ETF, Vanguard Small Cap Index Fund, and ARK Innovation ETF. Vanguard Total Stock Market ETF owns 12.34 million shares of the company’s stock, all valued at over $471.9 million. The company bought an additional 15287.0 shares recently to bring their total holdings to about 2.65% of the shares outstanding. Vanguard Small Cap Index Fund bought 44108.0 shares to see its total holdings expand to 10.22 million shares valued at over $390.65 million and representing 2.19% of the shares outstanding. ARK Innovation ETF sold 57746.0 shares to bring its total holdings to over 7.59 million shares at a value of $290.24 million. ARK Innovation ETF now owns shares totaling to 1.63% of the shares outstanding.
Shares of DraftKings Inc. (NASDAQ: DKNG) opened at $34.62, down -$0.63 from a prior closing price of $35.25. However, the script later moved the day high at 34.75, down -4.74%. The company’s stock has a 5-day price change of -5.99% and 15.63% over the past three months. DKNG shares are trading -4.74% year to date (YTD), with the 12-month market performance up to 197.96% higher. It has a 12-month low price of $10.94 and touched a high of $39.35 over the same period. DKNG has an average intraday trading volume of 12.58 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -6.79%, -2.78%, and 19.61% respectively.
Institutional ownership of DraftKings Inc. (NASDAQ: DKNG) shares accounts for 63.02% of the company’s 450.57M shares outstanding. Mutual fund holders own 32.89%, while other institutional holders and individual stakeholders account for 4.59% and 30.29% respectively.
It has a market capitalization of $15.66B and a beta (3y monthly) value of 1.86. The earnings-per-share (ttm) stands at -$2.19. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.35% over the week and 3.69% over the month.
Analysts forecast that DraftKings Inc. (DKNG) will achieve an EPS of $0.13 for the current quarter, -$0.34 for the next quarter and -$0.27 for 2024. The lowest estimate earnings-per-share for the quarter is -$0.04 while analysts give the company a high EPS estimate of $0.23. Comparatively, EPS for the current quarter was -$0.53 a year ago. Earnings per share for the fiscal year are expected to increase by 53.31%, and 82.03% over the next financial year.
If you are looking to buy this stock, then you may note that the average analyst recommendation by 34 brokerage firm advisors rate DraftKings Inc. (DKNG) as a “Strong Buy” at a consensus score of 1.59. Specifically, 23 Wall Street analysts polled rate the stock as a buy, while 9 of the 34 advise that investors “hold,” and 0 rated it as a “Sell.”
Looking at the support for the DKNG, a number of firms have released research notes about the stock. Argus stated their Buy rating for the stock in a research note on November 27, 2023, with the firm’s price target at $40-$46.
