ARK Investment Management, headed by founder Cathie Wood, recently parted ways with a portion of its shares of DraftKings (NASDAQ: DKNG). On Tuesday, the issuer of actively managed exchange-traded funds (ETFs) sold 294,143 shares of the sportsbook operator as the stock tumbled amidst a broader market sell-off caused by a disappointing March private sector jobs forecast. Of the total amount, 252,502 shares were taken from the ARK Innovation ETF (NYSEARCA: ARKK), the issuer’s largest ETF measured by assets under management, while another 41,641 shares were removed from the ARK Next Generation Internet ETF (NYSEARCA: ARKW).
The move follows similar transactions in late February, in which the money manager sold 207,747 shares of the gaming company. Despite the recent divestment, ARK Investment Management remains one of the largest institutional owners of DraftKings.
Analysts remain bullish on the gaming stock as shares are higher by 58.63% year to date. Just a day after ARK trimmed its DraftKings exposure, Argus analyst John Staszak reiterated a “buy” rating and a $22 price target on the stock. That implies upside of about 22% from the April 5 close. Staszak estimates the gaming company will generate $3.1 billion in revenue this year, ahead of the $2.95 billion that is the operator’s midpoint for this year’s guidance, and above the $3 billion Wall Street is forecasting.
The news of ARK’s divestment of DraftKings shares comes shortly after co-founders Jason Robins and Matthew Kalish sold 600K shares of the stock. According to some Twitter users, the real insult was DraftKings covering $131,607 in Robins’ 2022 Super Bowl expenses while investors were left holding the bag on a sagging stock.
ARK Investment Management recently decreased its stake of DraftKings (NASDAQ: DKNG) by selling 294,143 shares of the sportsbook operator. On Tuesday, the issuer of actively managed exchange-traded funds (ETFs) sold the shares amidst a broader market sell-off caused by a disappointing March private sector jobs forecast. Of the total amount, 252,502 shares were taken from the ARK Innovation ETF (NYSEARCA: ARKK), the issuer’s largest ETF measured by assets under management, while another 41,641 shares were removed from the ARK Next Generation Internet ETF (NYSEARCA: ARKW).
This follows similar transactions in late February in which the money manager sold 207,747 shares of the gaming company. Despite the recent divestment, ARK Investment Management remains one of the largest institutional owners of DraftKings.
Analysts remain positive on the gaming stock as shares have increased by 58.63% year to date. Following the divestment, Argus analyst John Staszak reiterated a “buy” rating and a $22 price target on the stock. That implies upside of about 22% from the April 5 close. Staszak estimates the gaming company will generate $3.1 billion in revenue this year, ahead of the $2.95 billion that is the operator’s midpoint for this year’s guidance, and above the $3 billion Wall Street is forecasting.
The news of ARK’s reduced DraftKings stake comes shortly after co-founders Jason Robins and Matthew Kalish sold 600K shares of the stock. This was followed by reports of the company paying $131,607 in Robins’ 2022 Super Bowl expenses while investors were left holding the bag on a sagging stock.
