Wolf Hill Capital Management LP Takes Position in DraftKings Inc. (NASDAQ:DKNG)

Wolf Hill Capital Management LP acquired a new position in shares of DraftKings Inc. (NASDAQ:DKNG) in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund acquired 1,043,198 shares of the company’s stock, valued at approximately $38,807,000. DraftKings comprises 2.8% of Wolf Hill Capital Management LP’s investment portfolio, making the stock its 14th biggest holding.

Several other hedge funds also recently modified their holdings of the business. Norges Bank bought a new position in DraftKings in the fourth quarter valued at approximately $276,328,000. FMR LLC increased its holdings in 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 purchasing an additional 7,150,382 shares during the last quarter. Baillie Gifford & Co. acquired a new position in DraftKings in the fourth quarter valued at about $246,765,000. Contrarius Group Holdings Ltd bought a new position in DraftKings during the fourth quarter worth about $58,397,000. Finally, Massachusetts Financial Services Co. MA grew its position in shares of DraftKings by 18.0% during the 4th quarter. Massachusetts Financial Services Co. MA now owns 6,797,507 shares of the company’s stock worth $252,867,000 after buying an additional 1,036,763 shares during the period. Institutional investors own 37.70% of the company’s stock.

Analyst Ratings Changes

Several research analysts recently weighed in on the stock. Morgan Stanley lifted their price objective on shares of DraftKings from $49.00 to $53.00 and gave the stock an “overweight” rating in a research note on Monday, February 24th. Argus set a $60.00 price objective on DraftKings in a research note on Tuesday, February 18th. TD Cowen decreased their target price on DraftKings from $55.00 to $51.00 and set a “buy” rating for the company in a research note on Tuesday, February 4th. Benchmark lifted their price objective on DraftKings from $44.00 to $51.00 and gave the company a “buy” rating in a report on Monday, March 10th. Finally, JPMorgan Chase & Co. raised their target price on shares of DraftKings from $53.00 to $61.00 and gave the stock an “overweight” rating in a report on Tuesday, February 18th. Three investment analysts have rated the stock with a hold rating and twenty-five have given a buy rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $55.27.

DraftKings Stock Performance

NASDAQ DKNG opened at $32.44 on Tuesday. The firm’s fifty day moving average price is $38.95 and its two-hundred day moving average price is $39.66. DraftKings Inc. has a 1 year low of $28.69 and a 1 year high of $53.61. The firm has a market capitalization of $28.64 billion, a P/E ratio of -30.60, a price-to-earnings-growth ratio of 1.43 and a beta of 2.16. The company has a current ratio of 0.93, a quick ratio of 1.00 and a debt-to-equity ratio of 1.24.

DraftKings (NASDAQ:DKNG) last issued its earnings results on Thursday, February 13th. The company reported ($0.28) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.07 by ($0.35). DraftKings had a negative net margin of 10.64% and a negative return on equity of 48.13%. As a group, research analysts anticipate that DraftKings Inc. will post 0.64 EPS for the current year.

Insider Buying and Selling

In related news, insider Jason Robins sold 666,651 shares of the company’s stock in a transaction dated Tuesday, February 25th. The shares were sold at an average price of $42.42, for a total value of $28,279,335.42. Following the transaction, the insider now owns 3,336,195 shares in the company, valued at approximately $141,521,391.90. This represents a 16.65 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Matthew Kalish sold 587,585 shares of the firm’s stock in a transaction that occurred on Friday, February 21st. The stock was sold at an average price of $47.05, for a total transaction of $27,645,874.25. Following the sale, the insider now owns 4,118,927 shares of the company’s stock, valued at $193,795,515.35. This trade represents a 12.48 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 2,575,525 shares of company stock valued at $109,441,446. 51.19% of the stock is owned by insiders.

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.