DraftKings (NASDAQ: DKNG) insiders collectively sold close to $206 million worth of the company’s shares in 2024, according to MarketBeat data. This trend persisted even as the gaming company’s stock underperformed key market indices, frustrating retail investors.
The year closed with December sales by Chief Legal Officer R. Stanton Dodge and co-founder Paul Liberman, who together offloaded more than $30 million worth of equity. In total, insiders sold $205.54 million in stock throughout 2024, continuing a pattern that has drawn criticism from market participants.
Adding to investors’ frustration is the absence of insider buying activity. MarketBeat data shows that all 20 insider transactions this year — including those by CEO Jason Robins and co-founder Liberman — were sales.
On a slightly positive note, insider sales declined over the year. First-quarter transactions totaled $66 million, dropping to $61 million in the second quarter, $45 million in the third, and $34 million in the final quarter of 2024.
DraftKings Underperformance Highlights Insider Selling
The heavy insider selling coincided with a lackluster year for DraftKings shares, which rose just 5.53% in 2024. This performance lagged well behind benchmarks like the Nasdaq 100, S&P Select Sector Consumer Discretionary, and S&P 500, all of which posted gains exceeding 25%.
Additionally, DraftKings significantly underperformed its primary competitor, Flutter Entertainment (NYSE: FLUT), the parent company of FanDuel. Flutter’s shares surged 44.39% in 2024.
Exacerbating the situation for DraftKings shareholders, Flutter insiders refrained from selling stock throughout the year, with no transactions recorded over the last three months. Flutter further supported its stock with a $5 billion share repurchase program announced in September, dwarfing DraftKings’ $1 billion buyback plan revealed in August.
Insider Selling Minimal at DraftKings’ Competitors
DraftKings stands out for the volume of insider selling compared to rival operators in the iGaming and online sports betting sectors.
At Caesars Entertainment (NASDAQ: CZR), insider sales were modest, totaling less than $350,000 over the past year. Moreover, senior executives at the Caesars Sportsbook parent bought significantly more shares than they sold in the first half of 2024.
Penn Entertainment (NASDAQ: PENN), the parent of ESPN Bet, also showed a more balanced insider trading pattern. Over the past year, insiders purchased $2.61 million worth of shares compared to just $126,578 in sales. In terms of transaction count, buys outpaced sales by a 4-to-1 ratio.
DraftKings’ insider trading patterns, combined with its underwhelming stock performance, continue to draw scrutiny, underscoring the challenges the company faces in retaining investor confidence.
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