DraftKings’ Executives Sell Nearly $80M Worth of Shares

A handful of high-level executives with DraftKings, the leading American gaming and entertainment company, have sold nearly $80 million worth of company shares over the last three weeks. Details regarding Form 144 filings disclosed by the company reveal that the dumping of shares began on January 22, 2024, while the latest Form 144 reports were filed on February 8, 2024.

The confirmed sale of company shares comes ahead of the planned release of DraftKings’ fourth quarter and full year 2023 results. Near the end of January, the leading gaming and betting company revealed that its latest financial report will be released on February 15, 2024, while a conference call is scheduled for February 16, 2024.

Three executives have sold nearly $78.8 million worth of DraftKings shares. The list includes Jason Robins, the company’s CEO, Paul Liberman, co-founder of DraftKings, as well as Stanton Dodge, who currently holds the role of general counsel.

According to the recent Form 144 filings, Robins sold 200,000 shares worth approximately $7.61 million. In a separate filing, the executive offloaded another 450,000 DraftKings shares with an aggregate market value of $19.3 million.

On the other hand, Liberman sold 510,000 of the company’s stock worth $20.4 million.

Dodge, similar to Robins, had two separate Form 144 filings. He dumped some 52,777 stocks worth $2 million. Separately, Dodge sold 686,101 worth of shares with an aggregate market value of $29.4 million.

Selling Shares Is Not Uncommon for High-Level Execs

Financial industry analysts may speculate that the sale of shares ahead of the release of financial reports represents a warning sign or it is concerning at least. Yet, there are no factors that suggest any negative impact.

It is not uncommon for senior executives to sell shares when they want to gain access to cash. Besides the annual remuneration, Robins, Liberman and Dodge receive compensation in the form of equity. This is why such executives can sell part of the shares they accumulate.

DraftKings was founded back in 2012 by Robins, Liberman and Matt Kalish. The recent filings did not include Kalish or the company’s chief financial officer, Jason Park.

While Form 144 includes details regarding the outstanding shares of the shareholder, the number of shares sold and the aggregate market value, it does not disclose a reason behind the sale.