DraftKings
stock has been a good bet all year but Cathie Wood seems to think the odds of the rally continuing don’t look great.
Wood’s flagship ARK Innovation exchange-traded fund (ticker: ARKK) sold a combined 228,108 shares of
DraftKings
(DKNG), according to two separate trade notifications on Tuesday and Wednesday. The sale is worth $8.8 million based on the closing prices and stock amounts sold on both days.
The online sports betting company’s stock has soared 240% so far in 2023 and Wood is clearly in profit-taking mode. The ARK Innovation fund sold $35 million of DraftKings stock on two consecutive trading days earlier this month–Nov. 10 and Nov. 13–according to Investor’s Business Daily. ARKK also sold $4.8 million worth of shares on Nov.1 and Nov. 2, it added.
A separate fund, the
ARK Fintech Innovation ETF
(ARKF) sold around 23,000 shares in a notification on Nov. 6.
The stock is on an incredible run, climbing 40% in November. The shares rose 16.5% on a single day at the start of the month after the company’s third-quarter earnings beat expectations. The sports betting app’s monthly paying customers increased to 2.3 million, an impressive 40% jump compared to the year-ago period. It also hiked 2023 revenue guidance.
Wood may be selling the shares, but Wall Street is still bullish, with 76% of analysts rating the shares Buy–the highest buy ratio since it began trading in April 2020. The average price target on the stock is $40.03, implying a 3.5% upside to Wednesday’s closing price.
Write to Callum Keown at callum.keown@barrons.com
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