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

Contrarius Group Holdings Ltd bought a new position in shares of DraftKings Inc. (NASDAQ:DKNG - Free Report) during the 4th quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm bought 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 investment portfolio, making the stock its 11th biggest position. Contrarius Group Holdings Ltd owned 0.32% of DraftKings as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently made changes to their positions in DKNG. Geode Capital Management LLC lifted its position in shares of DraftKings by 3.7% during the 3rd quarter. Geode Capital Management LLC now owns 7,985,021 shares of the company's stock valued at $312,361,000 after acquiring an additional 284,131 shares during the period. Baillie Gifford & Co. acquired a new position in DraftKings in the fourth quarter valued at about $246,765,000. FMR LLC lifted its position in DraftKings by 14.7% during the third quarter. FMR LLC now owns 6,467,066 shares of the company's stock worth $253,509,000 after purchasing an additional 826,626 shares during the period. Fred Alger Management LLC grew its stake in DraftKings by 46.6% during the third quarter. Fred Alger Management LLC now owns 4,643,852 shares of the company's stock worth $182,039,000 after buying an additional 1,476,003 shares in the last quarter. Finally, Westfield Capital Management Co. LP grew its stake in DraftKings by 6.8% during the third quarter. Westfield Capital Management Co. LP now owns 3,698,026 shares of the company's stock worth $144,963,000 after buying an additional 236,427 shares in the last quarter. 37.70% of the stock is currently owned by institutional investors and hedge funds.

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DraftKings Stock Up 2.6 %

Shares of DraftKings stock traded up $1.03 during trading hours on Monday, reaching $40.52. The company's stock had a trading volume of 7,656,923 shares, compared to its average volume of 9,560,019. The company has a market capitalization of $19.85 billion, a P/E ratio of -38.23, a P/E/G ratio of 1.43 and a beta of 2.07. The stock's fifty day simple moving average is $42.18 and its two-hundred day simple moving average is $40.34. DraftKings Inc. has a one year low of $28.69 and a one year high of $53.61. The company has a debt-to-equity ratio of 1.24, a quick ratio of 1.00 and a current ratio of 0.93.

DraftKings (NASDAQ:DKNG - Get Free Report) last announced its quarterly earnings results on Thursday, February 13th. The company reported ($0.28) earnings per share 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%. On average, research analysts forecast that DraftKings Inc. will post 0.64 earnings per share for the current year.

Insider Buying and Selling

In other news, insider Jason Robins sold 666,651 shares of the firm's stock in a transaction on Tuesday, February 25th. The stock was sold at an average price of $42.42, for a total value of $28,279,335.42. Following the completion of the transaction, the insider now directly owns 3,336,195 shares of the company's stock, valued at $141,521,391.90. This trade represents a 16.65 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Paul Liberman sold 532,095 shares of DraftKings stock in a transaction dated Thursday, December 26th. The shares were sold at an average price of $38.30, for a total value of $20,379,238.50. Following the transaction, the insider now directly owns 68,654 shares of the company's stock, valued at $2,629,448.20. The trade was a 88.57 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 2,663,966 shares of company stock valued at $112,550,362. 51.19% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

DKNG has been the subject of several analyst reports. Barclays upped their price target on shares of DraftKings from $50.00 to $60.00 and gave the stock an "overweight" rating in a report on Tuesday, February 18th. Wells Fargo & Company boosted their price objective on shares of DraftKings from $53.00 to $60.00 and gave the company an "overweight" rating in a research report on Tuesday, February 18th. Piper Sandler reaffirmed an "overweight" rating and issued a $60.00 target price (up previously from $48.00) on shares of DraftKings in a report on Tuesday, February 18th. JMP Securities reiterated a "market outperform" rating and issued a $50.00 price target on shares of DraftKings in a research note on Friday, February 14th. Finally, Morgan Stanley raised their price target on shares of DraftKings from $49.00 to $53.00 and gave the company an "overweight" rating in a research note on Monday, February 24th. 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 data from MarketBeat.com, DraftKings has a consensus rating of "Moderate Buy" and a consensus target price 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.