DraftKings CEO Jason Robins sells $8.7 million in stock

  • Investing.com
DraftKings CEO Jason Robins sells $8.7 million in stock
Credit: © Reuters.

DraftKings Inc. (NASDAQ: DKNG ) CEO and Chairman Jason Robins has sold a total of $8.7 million worth of company stock, according to a recent SEC filing. The transactions, which took place on May 21, involved the sale of 200,000 shares of Class A common stock at prices ranging from $43.59 to $44.34.

The filing revealed that Robins executed two separate sales: one for 199,500 shares at an average price of $43.59, and a smaller transaction of 500 shares at $44.34 per share. Following these transactions, Robins still holds a substantial number of shares, with 2,668,954 shares remaining in his possession.

Additionally, Robins engaged in transactions involving the acquisition of shares through the vesting of restricted stock units (RSUs) but did not transfer or sell any shares upon vesting other than to satisfy withholding taxes. Specifically, 5,849 RSUs vested, resulting in a net receipt of 2,828 shares after 2,828 shares were withheld by DraftKings Inc. to cover associated taxes, valued at $41.90 per share for a total of $118,493.

The SEC filing also notes that the sales were made pursuant to a pre-arranged 10b5-1 trading plan, which allows company insiders to sell stocks at predetermined times to avoid accusations of trading on nonpublic information.

Robins holds a significant stake in DraftKings beyond the Class A common stock, being the sole holder of 393,013,951 shares of Class B Common Stock, which are not registered securities. The recent transactions reflect a portion of Robins' overall holdings and are part of the regular financial activities of company executives.

Investors often monitor insider transactions as they can provide insights into executives' perspectives on the company's future performance. However, it is important to note that such sales can be motivated by a variety of personal financial planning reasons and do not necessarily indicate a lack of confidence in the company.

InvestingPro Insights

As DraftKings Inc. ( NASDAQ :DKNG) navigates through a period marked by insider transactions, it's important for investors to keep an eye on the company's financial health and market performance. Here are some key metrics and tips from InvestingPro that may provide additional context to the recent activities of CEO and Chairman Jason Robins:

  • With a market capitalization of $20.27 billion, DraftKings stands as a significant player in the online betting and gaming industry.
  • The company's revenue has shown impressive growth, with a 57.0% increase over the last twelve months as of Q1 2024, indicating a strong upward trajectory in sales.
  • Despite not being profitable over the last twelve months, with a negative operating income margin of -12.85%, analysts are predicting that DraftKings will turn profitable this year, an InvestingPro Tip that signals potential for future financial stability.

InvestingPro Tips also highlight that analysts expect net income and sales to grow in the current year, with four analysts having revised their earnings upwards for the upcoming period. Additionally, the company's stock price has experienced significant volatility recently, with an 8.17% decrease in the last week, but still showing a high return of 68.12% over the past year. This suggests that while the stock has faced short-term fluctuations, it has been a strong performer over a longer period.

For investors looking for more in-depth analysis and additional insights, there are 13 more InvestingPro Tips available for DraftKings at https://www.investing.com/pro/DKNG. These tips could provide valuable information for making informed investment decisions.

Moreover, by using the coupon code PRONEWS24, investors can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking further exclusive data and insights that could potentially enhance investment strategies.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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