Contrarius Group Holdings Ltd Takes $58.40 Million Position in DraftKings Inc. (NASDAQ:DKNG)

Contrarius Group Holdings Ltd purchased a new stake in DraftKings Inc. (NASDAQ:DKNG) in the 4th quarter, according to its most recent Form 13F filing with the SEC. The firm purchased 1,569,800 shares of the company’s stock, valued at approximately $58,397,000. DraftKings accounts for about 3.6% of Contrarius Group Holdings Ltd’s holdings, making the stock its 11th biggest holding. Contrarius Group Holdings Ltd owned about 0.32% of DraftKings at the end of the most recent quarter.

Several other hedge funds have also modified their holdings of DKNG. Atria Investments Inc acquired a new position in DraftKings during the third quarter worth $215,000. Metis Global Partners LLC acquired a new position in DraftKings during the third quarter worth $213,000. OneDigital Investment Advisors LLC raised its holdings in DraftKings by 28.9% during the third quarter. OneDigital Investment Advisors LLC now owns 9,886 shares of the company’s stock worth $388,000 after purchasing an additional 2,216 shares during the last quarter. CIBC Asset Management Inc raised its holdings in DraftKings by 3.5% during the third quarter. CIBC Asset Management Inc now owns 13,690 shares of the company’s stock worth $537,000 after purchasing an additional 469 shares during the last quarter. Finally, Empowered Funds LLC raised its holdings in DraftKings by 12.3% during the third quarter. Empowered Funds LLC now owns 6,839 shares of the company’s stock worth $268,000 after purchasing an additional 750 shares during the last quarter. 37.70% of the stock is owned by institutional investors and hedge funds.

DraftKings Price Performance

DKNG stock opened at $38.54 on Thursday. The stock has a 50-day moving average price of $42.17 and a two-hundred day moving average price of $40.20. DraftKings Inc. has a 12-month low of $28.69 and a 12-month high of $53.61. The company has a current ratio of 0.93, a quick ratio of 1.00 and a debt-to-equity ratio of 1.24. The company has a market cap of $18.88 billion, a PE ratio of -36.36, a price-to-earnings-growth ratio of 1.43 and a beta of 2.07.

DraftKings (NASDAQ:DKNG) last posted its quarterly earnings results on Thursday, February 13th. The company reported ($0.28) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates 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 predict that DraftKings Inc. will post 0.64 EPS for the current year.

Insiders Place Their Bets

In related news, insider R Stanton Dodge sold 52,777 shares of the business’s stock in a transaction dated Monday, March 17th. The stock was sold at an average price of $39.00, for a total value of $2,058,303.00. Following the transaction, the insider now owns 653,843 shares in the company, valued at approximately $25,499,877. The trade was a 7.47 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Alan Wayne Ellingson sold 158,661 shares of the business’s stock in a transaction dated Tuesday, February 25th. The stock was sold at an average price of $42.42, for a total value of $6,730,399.62. Following the completion of the transaction, the chief financial officer now owns 179,435 shares in the company, valued at approximately $7,611,632.70. This trade represents a 46.93 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 2,663,966 shares of company stock worth $112,550,362 over the last quarter. 51.19% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on DKNG. TD Cowen reduced their price objective on DraftKings from $55.00 to $51.00 and set a “buy” rating for the company in a report on Tuesday, February 4th. Wells Fargo & Company lifted their price objective on DraftKings from $53.00 to $60.00 and gave the stock an “overweight” rating in a report on Tuesday, February 18th. Morgan Stanley boosted their price target on DraftKings from $49.00 to $53.00 and gave the stock an “overweight” rating in a report on Monday, February 24th. Needham & Company LLC set a $65.00 price target on DraftKings in a report on Tuesday, February 18th. Finally, JMP Securities reissued a “market outperform” rating and issued a $50.00 price target on shares of DraftKings in a report on Friday, February 14th. Three research analysts have rated the stock with a hold rating and twenty-five have issued a buy rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $54.44.

DraftKings Company Profile

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.