DraftKings (NASDAQ: $DKNG) Sinks 1.43% On Friday As SEC Filing Shows CEO Sold $8.5M Stake On Wednesday

DraftKings Inc. (NASDAQ: $DKNG)

DraftKings (NASDAQ: $DKNG) is a billion-dollar sports betting and fantasy firm based in Boston, Massachusetts, United States. It provides your favorite games to bet on and earn real money from wagers, which you can easily withdraw. You can play in casinos and try different games to bet.

On May 8, Jason Robbins, the chief executive officer and chairman of the board, sold 200,000 shares of the company’s stock. The shares were valued at an average price of $42.67, totaling $8,534,000.00.

Robbin previously sold 200,000 shares on April 22nd with an average price of $40.91, totaling $8,182,000.00. Additionally, Jason Robins offloaded 200,000 shares of DraftKings stock on Wednesday, February 21. These shares were sold at an average price of $40.89, resulting in a total transaction value of $8,178,000.00.

Robin still has a huge stake in DraftKings, both directly and indirectly. Directly, the CEO holds over 3 million Class A shares, and is the sole holder of 93,013,951 Class B shares, which are registered as securities. Indirectly, he holds a significant stake in the company via trusts.

DRafKings Beats Estimates in Q1 Results

The company unveiled its quarter-one results for fiscal year 2024 on May 2, 2024. In the first quarter, the betting firm reported $1.18 billion of revenue, beating analysts’ estimates of $1.12 billion by 5.08% and representing  53% revenue growth year-over-year.

DraftKings experienced a negative return on equity of 62.74% and a negative net margin of 13.45% in the quarter with adjusted EBITDA of $22 million.

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DraftKings Updates Fiscal Year 2024 Guidance

In the Q1 results, the company updated its guidance for fiscal 2024. It expects revenue of between $4.8 billion and $5 billion in 2024, with adjusted EBITDA between $460 million and $540 million.

They stated, “The $125 million improvement in our fiscal year 2024 revenue guidance midpoint and $40 million improvement in our Adjusted EBITDA guidance.”  

The company forecasted a free cash flow of $400 million with year-end cash and cash equivalents of $1.6 billion before funding the acquisition of Jackpocket.

Insights from Institutional Investors 

Multiple hedge funds have modified their holdings in Draftkings. International Assets Management LLC bought a new position worth $7,975,000 in shares during the fourth quarter.

During the third quarter, Deutsche Bank AG increased its ownership of DraftKings shares by 169.1%. The bank now possesses 1,338,075 shares of the company’s stock valued at $39,393,000, following the acquisition of an additional 840,755 shares during this period.

Additionally, EP Wealth Advisors bought a new stake in DraftKings in the third quarter, valued at $209,000. Schon Field Strategic Advisors LLC also grew its portfolio by 27.6% in Draftkings. After acquiring an additional 64,186 shares during the period, the company now holds 296,900 shares of its stock valued at $8,741,000.

DKNG Stock Performance

DKNG shares opened at $44.24 on Friday and closed at $43.27, down by 1.43%. The stock is up by 28.86% this year as of Friday’s closing price. On Monday, May 13, the stock fell slightly by 0.49% to $43.03 as of 09:54 AM EDT. 

The company’s 50-day moving average is $43.71, while its 200-day moving average is $39.31. At the time of writing, the market cap is $20.64 billion, with a trading volume of 505,560, significantly below the average 3-month volume of 11.15 million shares. 

Short interest in the stock has declined by 8.05% over the past month, with short sellers holding 18.73 million DKNG shares as of April 30, 2024. That represents 4.04% of the floating shares and 3.94% of the shares outstanding. 

DraftKings Inc. (DKNG)
DraftKings (NASDAQ: $DKNG)

Should You Buy DKNG?

DraftKings reported robust quarterly results that surpassed estimates with excellent guidance for 2024, attracting investors. The company is confident that it will make good progress in other quarters as well; therefore, investing in $DKNG is a good stock to invest in for lucrative profits.

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