DraftKings Stock Has Slumped. Insiders Bought Up Shares.

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Shares of sports-betting company DraftKings have slipped to a 52-week low, and three directors recently bought shares totaling $2.6 million.

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Gabby Jones / Businesshala

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DraftKings stock has declined this year, but three directors recently bought $2.6 million worth of shares in the sports-betting company.

This is the first open market purchase of the stock by insiders since DraftKings went public through a special-purpose acquisition company in early 2020.

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DraftKings (ticker: DKNG) stock is down 23% so far this year, from a 52-week intraday low of $34.42 just last week. Meanwhile, the S&P 500 index is up 27 per cent.

The company has faced headwinds recently. A disappointing third-quarter report earlier this month sent shares falling. Late October, DraftKings $22 billion bid dropped for entertainment,
A deal that would have provided brick-and-mortar betting sites in the UK, and a foothold in online international gambling.

DraftKings Director and Vice Chairman Harry E. Sloan led the purchase, $2 million paid for 50,000 shares on November 16, the average price per share $39.52. Sloan, a former President and CEO of the motion picture and television company Metro-Goldwyn-Mayer, now owns 63,035 shares, according to a form they filed with the Securities and Exchange Commission. He obtained his other DraftKings shares through vested restricted stock units he provided for his board service.

DraftKings also provided commentary from Sloan as well as the other two directors.

Sloan, A Supporters of SPAC The person who made DraftKings public said: “I am confident in DraftKings’ growth trajectory and leading position in the US gaming market. I remain excited about the long-term opportunity DraftKings presents. [CEO] Jason [Robins] and the ability of their management team to deliver on their compelling vision for the company’s future. ,

Director Steven J. died Paid $366,600 for 10,000 DraftKings shares on November 19, an average price per share of $36.66. NS managing partner The former executive of venture-capital firm Revolution Growth and SoftBank now owns 28,154 shares, some of which have been distributed through limited partnerships.

Murray said: “DraftKings has tremendous long-term growth potential. The company’s leadership is focused on maintaining a leading position in the US gaming market, as well as exploring potential opportunities to expand into new verticals.

director Woody Levine Paid $260,000 for 7,000 shares on November 18, the average price of each is $36.81. Levine, an investor and a former DocuSign (DOCU) executive, now holds 19,495 shares in a personal account, and another 44,616 shares through a family trust.

Levine said: “It was an opportunity to raise my position at DraftKings. Yes, I personally see this as an attractive price tag, but most importantly, I have great faith in Jason and his leadership team, Which will continue to perform while creating many exciting new organic growth opportunities across the company’s core product offerings.”

The Inside Scoop features a regular baron covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Because of their insider positions, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.

Write and follow Ed Lynn at [email protected] @BarronsEdLin,

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