Sumitomo Mitsui Trust Holdings Inc. Cuts Stock Holdings in DraftKings Inc. (NASDAQ:DKNG)

Sumitomo Mitsui Trust Holdings Inc. decreased its position in shares of DraftKings Inc. (NASDAQ:DKNG) by 17.2% during the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 8,390,942 shares of the company’s stock after selling 1,747,618 shares during the quarter. Sumitomo Mitsui Trust Holdings Inc. owned 0.98% of DraftKings worth $295,781,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors have also recently made changes to their positions in the company. Vanguard Group Inc. grew its position in DraftKings by 0.3% in the 3rd quarter. Vanguard Group Inc. now owns 37,038,159 shares of the company’s stock worth $1,090,403,000 after purchasing an additional 109,406 shares during the period. Whale Rock Capital Management LLC bought a new stake in DraftKings in the 2nd quarter worth approximately $215,687,000. Jericho Capital Asset Management L.P. grew its position in DraftKings by 39.4% in the 3rd quarter. Jericho Capital Asset Management L.P. now owns 7,153,967 shares of the company’s stock worth $210,613,000 after purchasing an additional 2,022,000 shares during the period. Geode Capital Management LLC grew its position in DraftKings by 3.2% in the 1st quarter. Geode Capital Management LLC now owns 5,962,037 shares of the company’s stock worth $115,425,000 after purchasing an additional 184,476 shares during the period. Finally, Two Sigma Investments LP bought a new stake in DraftKings in the 1st quarter worth approximately $102,351,000. Hedge funds and other institutional investors own 37.70% of the company’s stock.

DraftKings Stock Performance

Shares of DKNG stock opened at $44.22 on Monday. The company’s fifty day simple moving average is $43.77 and its two-hundred day simple moving average is $37.57. The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 1.49. DraftKings Inc. has a 52 week low of $18.63 and a 52 week high of $49.57.

DraftKings (NASDAQ:DKNG) last announced its earnings results on Friday, February 16th. The company reported ($0.10) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.06 by ($0.16). The business had revenue of $1.23 billion for the quarter, compared to analysts’ expectations of $1.24 billion. DraftKings had a negative net margin of 21.88% and a negative return on equity of 87.24%. The firm’s quarterly revenue was up 43.9% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($0.53) earnings per share. As a group, research analysts predict that DraftKings Inc. will post -0.25 EPS for the current year.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on DKNG shares. Barclays raised shares of DraftKings from an “equal weight” rating to an “overweight” rating and lifted their target price for the stock from $41.00 to $50.00 in a research report on Friday, February 23rd. BNP Paribas downgraded shares of DraftKings from a “neutral” rating to an “underperform” rating and set a $28.00 price objective for the company. in a research report on Friday, January 19th. Piper Sandler boosted their price objective on shares of DraftKings from $40.00 to $50.00 and gave the company an “overweight” rating in a research report on Tuesday, February 13th. BMO Capital Markets boosted their price objective on shares of DraftKings from $43.00 to $51.00 and gave the company an “outperform” rating in a research report on Friday, February 16th. Finally, Truist Financial reissued a “buy” rating and set a $55.00 price objective (up previously from $45.00) on shares of DraftKings in a research report on Tuesday, February 20th. Two equities research analysts have rated the stock with a sell rating, one has issued a hold rating and twenty-four have assigned a buy rating to the company. According to data from MarketBeat.com, DraftKings has an average rating of “Moderate Buy” and an average target price of $46.46.

Insider Activity

In related news, insider Jason Robins sold 200,000 shares of the company’s stock in a transaction dated Monday, January 22nd. The shares were sold at an average price of $37.82, for a total transaction of $7,564,000.00. Following the transaction, the insider now directly owns 3,815,698 shares in the company, valued at approximately $144,309,698.36. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. In related news, insider Paul Liberman sold 510,000 shares of the company’s stock in a transaction dated Monday, January 29th. The shares were sold at an average price of $40.00, for a total transaction of $20,400,000.00. Following the transaction, the insider now directly owns 2,291,406 shares in the company, valued at approximately $91,656,240. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Jason Robins sold 200,000 shares of the company’s stock in a transaction dated Monday, January 22nd. The shares were sold at an average price of $37.82, for a total transaction of $7,564,000.00. Following the transaction, the insider now owns 3,815,698 shares in the company, valued at $144,309,698.36. The disclosure for this sale can be found here. In the last three months, insiders have sold 1,596,101 shares of company stock worth $65,685,509. 48.94% of the stock is currently owned by corporate 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.