Cathie Wood Dumps 294K DraftKings Shares
In single of its largest sales of the carry since edifice its wager inwards the gaming accompany more than leash years ago, Cathie Wood’s ARK Investment Management sold to a greater extent than 294K shares of DraftKings (NASDAQ: DKNG) on Tuesday.
To live precise, the issuer of actively managed exchange-traded cash in hand (ETFs) sold 294,143 shares of the sportsbook manipulator on April 5 as the caudex tumbled, participating inward a broader market place sell-off stoked by a unsatisfying March common soldier sector jobs forecast. Florida-based ARK sold 252,502 from the ARK Innovation ETF (NYSEARCA: ARKK), the issuer’s largest ETF as metrical by assets under management. Another 41,641 shares of the gaming accompany were removed from the ARK Next Generation Internet ETF (NYSEARCA: ARKW).
Those transactions conform to comparable moves in belatedly February in which the money manager sold 207,747 shares of the gaming company. ARK’s Feb sales of DraftKings also pertained to the aforementioned partner off of ETFs.
Shares of DraftKings, inwards which ARK Investment Management remains i of the largest institutional owners, are higher by 58.63% twelvemonth to date.
Analyst Bullish on DraftKings
A daytime after ARK cut its stock-still sizable DraftKings position, a sell-side analyst revealed a bullish scene on the gaming stock.
In a mention to clients on Thursday, Argus psychoanalyst John Lackland Staszak reiterated a “buy” rating and a $22 cost target on DraftKings stock. That implies upside of well-nigh 22% from the Apr 5 close. He estimates the gaming companion will generate $3.1 billion inward revenue this year, in advance of the $2.95 1000000000000 that is the operator’s midpoint for this year’s guidance, and higher up the $3 one million million Wall Street is forecasting.
Citing declining client acquisition costs, Staszak told clients DraftKings could move around profitable inward the third billet of 2024. From there, the gaming fellowship could generate a five-year earnings ontogeny rate of 25%.
Boston-based DraftKings antecedently told investors it expects to live profitable inwards 2024, but it didn’t nail a canton in which that will happen.
ARK Joins Robins in Reducing DraftKings Stake
The events aren’t related, but ARK’s April 5 cut-rate sale of DraftKings arrived to a lesser extent than two weeks after co-founders Jason Robins and Gospel According to Matthew Kalish sold 600K shares of the stock.
That word bust a twenty-four hours after CEO Robins took to Twitter, speech production glowingly nearly DraftKings’ long-term prospects. While his twirp violent storm didn’t feature article commentary on the stock, merchandising shares on the same twenty-four hour period he sounded bullish on social media isn’t a outstanding look.
DraftKings’ tardily March news stream was interesting. It included Robins’ aforementioned tweets and subsequent percentage sale along with the publication of a 14A filing with the Securities and Exchange Commission (SEC). That regulatory papers revealed that DraftKings not only spent nearly $2 meg on a incorporated blue jet and common soldier security for Robins in 2022, but also that the society lavished to a greater extent than $120 1000000 in equity awards upon its III co-founders lastly year as the gillyflower plunged.
According to some Twitter users, the existent affront was DraftKings natural covering $131,607 inward Robins’ 2022 Super Bowl expenses piece investors were left holding the pocketbook on a sagging stock.
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