DraftKings Independent Vice Chairman of the Board Acquires 11% More Stock

DraftKings Inc. (NASDAQ:DKNG) shareholders (or potential shareholders) will be happy to see that the Independent Vice Chairman of the Board, Harry Sloan, recently bought a whopping US$758k worth of stock, at a price of US$30.30. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 11%.

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DraftKings Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Independent Director, Ryan Moore, sold US$3.5m worth of shares at a price of US$46.24 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$29.69. So it may not shed much light on insider confidence at current levels.

Happily, we note that in the last year insiders paid US$1.1m for 35.00k shares. But they sold 124.23k shares for US$5.7m. Over the last year we saw more insider selling of DraftKings shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for DraftKings

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Insider Ownership Of DraftKings

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. DraftKings insiders own about US$363m worth of shares (which is 2.3% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The DraftKings Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at DraftKings, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 1 warning sign for DraftKings you should be aware of.

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For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.