What's Going On With DraftKings Stock?

Zinger Key Points
  • DraftKings files a prospectus supplement for the proposed sale of up to 7.5 million shares by selling stockholders.
  • Several reports suggest DraftKings was added to Morgan Stanley's Top Picks list.

DraftKings Inc DKNG shares are trading higher Monday. The company filed for a mixed shelf offering on Friday before being named a top pick by Morgan Stanley this week.

What To Know: After the market close on Friday, DraftKings filed a prospectus supplement for the proposed sale of up to 7.5 million shares of its Class A common stock by selling stockholders.

All of the shares being offered would be sold by the selling stockholders for their respective accounts. DraftKings will not receive any of the proceeds from the sales by the selling stockholders.

DraftKings shares traded lower following the filing, but the stock is bouncing back in early trading Monday. The upward momentum appears to be due to reports indicating DraftKings was added to Morgan Stanley’s Top Picks list on Monday.

Several reports suggest Morgan Stanley argued in a new note to clients that recent tax increase concerns could be overdone. The firm reportedly sees earnings upside on the horizon.

Morgan Stanley reiterated DraftKings with an Overweight rating and a price target of $51.

See Also: Caitlin Clark Not Selected For US Olympic Basketball Team Roster, WNBA Rookie Will Miss Paris

How To Buy DKNG Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in DraftKings' case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

DKNG Price Action: DraftKings shares were up 1.82% at $37.56 at the time of publication, according to Benzinga Pro.

Photo: courtesy of DraftKings.

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