Robins Dumped DraftKings Stock on Day He Praised Outlook on Twitter
On the same day he radius optimistically about the company’s time to come on Twitter, DraftKings (NASDAQ: DKNG) co-founder and CEO Jason Robins reduced his equity stakes inward the gaming operator.
According to a Form 4 filing with the Securities and Exchange Commission (SEC), Robins sold 300K shares of the online sportsbook operator on Monday. That same day, he unleashed a “tweet storm” from which unwitting investors could comprehend he’s bullish on his company’s stock. To be clear, the tweets did non include open mention of the shares.
I’ve ne'er been more surefooted well-nigh DraftKings’ future,” wrote Robins in the for the first time of eight tweets.
He sold 300K Class A shares at an average price of $17.72 on Monday. Co-founder Levi Kalish also unloaded 269,420 shares at that damage on the same day. The gillyflower resides at $18.76 at this writing, and is higher past 7.32% o'er the past week.
Robins, Kalish Sales Not Necessarily Alarming
While the timing of the Robins and Kalish sales may hike eyebrows among some DraftKings investors, it could simply live a affair of the executives taking profits and diversifying personal portfolios. Entering Thursday, DraftKings’ shares were upwardly 64.71% year to date.
The combined $10 one thousand thousand worth of DraftKings equity Robins and Kalish dumped on Mon is small inward comparison to the inventory awards they received as piece of their 2022 compensation. While that duo and fellow co-founder, Paul Liberman, drew 2022 salaries of just $1, the Boston-based gaming society awarded them with to a greater extent than $120 million combined inwards equity-based compensation.
While some investors may reason that’s unstinting make up against the background of DraftKings losing to a greater extent than 58% of its time value in conclusion twelvemonth and the fellowship not in time beingness profitable, the other side of that coin is, as major shareholders inwards the company, Kalish, Liberman, and Robins need the caudex to appreciate, as ut retail investors with little stakes.
Following the Monday sales, Robins and Kalish allay combine to possess around 10 gazillion shares of DraftKings Class group A stock.
Robins Still John Roy Major DraftKings Investor
Robins, Kalish, and Liberman are the leash largest single shareholders of DraftKings equity, and the other teetotum 10 item-by-item holders of the buy in are either other high-ranking executives or plank members.
As the proprietor of the absolute majority of DraftKings Class group B shares, which make super voting rights, Robins, 42, also “currently possesses around 90% of the sum voting power,” according to a regulatory document. While that confirms some level of allegiance to the company, it’s also potentially risky for investors.
Due to i person, Robins, holding the majority of DraftKings’ voting power, the manipulator is what’s known as a controlled company. There are potential governance issues that follow with that status, including the dot that DraftKings isn’t required to make a legal age of its directors considered “independent.” The day-to-day fantasize sports (DFS) colossus notes that heptad of its 11 table members are independent.
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