Hodges Capital Management Inc. Purchases 148,292 Shares of DraftKings Inc. $DKNG

Hodges Capital Management Inc. grew its position in DraftKings Inc. (NASDAQ:DKNG) by 25.9% during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 721,235 shares of the company’s stock after acquiring an additional 148,292 shares during the quarter. DraftKings accounts for 2.1% of Hodges Capital Management Inc.’s portfolio, making the stock its 12th biggest holding. Hodges Capital Management Inc.’s holdings in DraftKings were worth $24,854,000 at the end of the most recent quarter.

A number of other large investors have also added to or reduced their stakes in the company. IHT Wealth Management LLC increased its stake in DraftKings by 4.1% in the 2nd quarter. IHT Wealth Management LLC now owns 6,271 shares of the company’s stock worth $269,000 after acquiring an additional 248 shares during the last quarter. Orion Porfolio Solutions LLC increased its stake in DraftKings by 3.1% in the 3rd quarter. Orion Porfolio Solutions LLC now owns 10,608 shares of the company’s stock worth $397,000 after acquiring an additional 321 shares during the last quarter. Global Retirement Partners LLC increased its stake in DraftKings by 3.8% in the 4th quarter. Global Retirement Partners LLC now owns 10,365 shares of the company’s stock worth $357,000 after acquiring an additional 379 shares during the last quarter. Ameriflex Group Inc. increased its stake in DraftKings by 100.0% in the 3rd quarter. Ameriflex Group Inc. now owns 810 shares of the company’s stock worth $30,000 after acquiring an additional 405 shares during the last quarter. Finally, Centaurus Financial Inc. increased its stake in DraftKings by 4.1% in the 3rd quarter. Centaurus Financial Inc. now owns 10,511 shares of the company’s stock worth $393,000 after acquiring an additional 410 shares during the last quarter. Institutional investors own 37.70% of the company’s stock.

Key Headlines Impacting DraftKings

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: DraftKings reported rapid growth on its prediction-markets platform, with annualized consumer volume reaching $1.3 billion and total volume climbing to $3.1 billion, fueling optimism about a new growth engine. DraftKings Sees $1.3 Billion in Prediction Market Trading. The Stock Is Soaring.
• Positive Sentiment: Retail traders and options activity accelerated after the update, with call buying signaling expectations for more upside if prediction-market momentum continues. Call Traders Target DraftKings Stock Amid Strong Volume Growth
• Positive Sentiment: UBS reiterated a Buy rating on DraftKings, reinforcing the view that Wall Street is becoming more constructive on the company’s growth outlook. UBS Remains a Buy on DraftKings (DKNG)
• Neutral Sentiment: DraftKings CEO Jason Robins is scheduled to participate in an upcoming investor conference, which could provide more color on strategy but is not itself a major catalyst. DraftKings Announces Jason Robins’ Participation in Upcoming Event
• Neutral Sentiment: DraftKings also had a short-interest filing showing no meaningful short base, which does not appear to be a major driver of the move.

Insider Buying and Selling

In other news, Director Jocelyn Moore sold 2,150 shares of DraftKings stock in a transaction that occurred on Friday, March 13th. The stock was sold at an average price of $25.60, for a total value of $55,040.00. Following the completion of the transaction, the director owned 1,406 shares in the company, valued at approximately $35,993.60. The trade was a 60.46% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Woodrow Levin sold 34,234 shares of DraftKings stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $25.71, for a total value of $880,156.14. Following the completion of the transaction, the director owned 29,820 shares of the company’s stock, valued at approximately $766,672.20. This trade represents a 53.45% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 37,246 shares of company stock valued at $957,031. Company insiders own 47.18% of the company’s stock.

DraftKings Price Performance

Shares of DraftKings stock opened at $28.79 on Thursday. The stock has a market cap of $14.28 billion, a price-to-earnings ratio of 479.83 and a beta of 1.66. The company has a debt-to-equity ratio of 3.03, a quick ratio of 1.02 and a current ratio of 1.02. The stock has a 50 day moving average price of $24.17 and a 200-day moving average price of $27.56. DraftKings Inc. has a one year low of $20.46 and a one year high of $48.78.

DraftKings (NASDAQ:DKNG) last announced its earnings results on Friday, May 8th. The company reported $0.20 EPS for the quarter, missing analysts’ consensus estimates of $0.22 by ($0.02). The company had revenue of $1.65 billion during 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%.DraftKings’s revenue for the quarter was up 16.8% compared to the same quarter last year. During the same quarter last year, the firm posted ($0.07) EPS. Equities analysts expect that DraftKings Inc. will post 0.6 EPS for the current year.

Wall Street Analyst Weigh In

A number of analysts have issued reports on the company. Mizuho lifted their price objective on DraftKings from $44.00 to $45.00 and gave the stock an “outperform” rating in a research note on Tuesday, May 12th. Stifel Nicolaus reduced their price objective on DraftKings from $44.00 to $40.00 and set a “buy” rating on the stock in a research note on Tuesday, February 17th. Citizens Jmp reduced their price objective on DraftKings from $38.00 to $34.00 and set a “market outperform” rating on the stock in a research note on Wednesday, April 1st. HSBC raised DraftKings from a “hold” rating to a “hold” rating in a research note on Friday, April 24th. Finally, Oppenheimer reduced their price objective on DraftKings from $50.00 to $35.00 and set an “outperform” rating on the stock in a research note on Tuesday, February 17th. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating, eight have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $34.21.

DraftKings Company Profile

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.