On the same day he expressed optimism regarding the future of DraftKings (NASDAQ: DKNG) on Twitter, co-founder and CEO Jason Robins reduced his equity stake in the gaming operator. A Form 4 filing with the Securities and Exchange Commission (SEC) revealed that Robins sold 300,000 shares of the online sportsbook operator on Monday. At the same time, he released a series of tweets that investors could interpret as bullish about the company’s stock.
Robins and co-founder Matt Kalish sold their shares at an average price of $17.72 on Monday. At the time of writing, the stock was trading at $18.76, having risen by 7.32% over the past week. This could lead some investors to question the timing of the sales, however, it could simply be that the executives were taking profits and diversifying their portfolios. The stock has already risen by 64.71% year-to-date.
Furthermore, the $10 million of DraftKings equity Robins and Kalish sold on Monday is a small fraction of the equity-based compensation they received for their 2022 salaries. Both Robins and Kalish, along with co-founder Paul Liberman, received more than $120 million combined in equity-based compensation.
Robins and Kalish remain major shareholders in the company, still possessing around 10 million Class A shares between them. Robins also holds the majority of DraftKings’ Class B shares, granting him 90% voting power. This could be seen as a commitment to the company, but it could also pose some risks to investors, as the operator is a “controlled company” and is not required to have a majority of its directors considered “independent.” DraftKings notes that seven of its 11 board members are independent.
