Over the past week, two of Cathie Wood’s exchange-traded funds (ETFs) have purchased additional shares of DraftKings (NASDAQ:DKNG) stock. DraftKings enables consumers to bet money on sports contests and casino games.
With the National Football League’s season kicking off yesterday, this tends to be the best time of year, from a financial perspective, for DraftKings.
Wood’s Purchases of DKNG Stock
On Sept. 8, Wood’s ARK Next Generation Internet ETF (NYSEARCA:ARKW) bought 7,236 shares of DKNG stock. Also on Sept. 8, her Ark Innovation ETF (NYSEARCA:ARKK) purchased 49,700 shares of DKNG stock.
On Sept. 7, the Ark Innovation ETF bought 12,433 shares of the name. And on Sept. 7, the ARK Next Generation ETF bought 1,812 shares of DraftKings.
Finally, on Sept. 6 the ARK Next Generation ETF bought 7,758 shares of DKNG stock and the Innovation ETF made the week’s largest purchase of DraftKing’s shares among Wood’s ETFs, buying 145,234 of its shares.
As of 9:00 a.m. Eastern today, DKNG stock accounted for 2.43% of the ARK ETFs’ total assets, and DraftKings was its 15th largest holding. The average price paid for the shares by the three ARK ETFs that own them ranged from $45.28 to $58.94. Yesterday, DraftKings’ shares closed at $16.99.
3 Analysts Were Upbeat on DraftKings in August
Last month, Morgan Stanley’s Ed Young reiterated a “buy” rating on DraftKings, saying that the company was making progress on narrowing its losses as more states legalize sports betting. Also bullish was Jefferies’ David Katz, who wrote that investors are starting to accept that the company will not need to raise additional funds for a number of years. Katz kept a “buy” rating on the shares.
Finally, Needham’s Bernie McTernan believes that the shares had reached an attractive entry point ahead of the beginning of football season. Like his peers, the analyst kept a “buy” rating on the shares.
On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
