DraftKings chief legal officer sells $4.04 million in stock

BOSTON—Dodge R. Stanton, the Chief Legal Officer at DraftKings Inc. (NASDAQ:DKNG), recently executed a series of stock sales, according to an SEC filing. On March 14 and 17, Stanton sold a total of 105,554 shares of DraftKings Class A Common Stock. The transactions, made under a pre-arranged trading plan, amounted to a total value of approximately $4.04 million. The sales come as DraftKings, now valued at $18.12 billion, has demonstrated strong revenue growth of 30% in the last twelve months.

The shares were sold at prices ranging from $37.59 to $39.00 per share. Following these transactions, Stanton holds 653,843 shares of DraftKings. According to InvestingPro analysis, DraftKings stock currently appears undervalued, with analysts maintaining positive growth forecasts for the company. Subscribers can access 12 additional exclusive ProTips and comprehensive financial analysis through the Pro Research Report.

These sales were conducted as part of a Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined plan for buying or selling stock, helping to avoid any potential conflicts of interest. With a beta of 2.07, DraftKings stock has shown higher volatility compared to the broader market, making it crucial for investors to maintain thorough due diligence.

In other recent news, DraftKings Inc. has reported a notable rebound in its betting activity, particularly benefiting from increased NBA viewership and the Super Bowl. This rebound has contributed to a positive outlook for the company, with analysts at Benchmark maintaining a Buy rating and a $51 price target for the stock. Additionally, TD Cowen and Piper Sandler have raised their price targets to $60, citing strong online sports betting activity and effective promotional spending as key factors. Stifel has also increased its price target to $57, acknowledging DraftKings’ significant performance and improved revenue guidance for fiscal year 2025.

DraftKings has announced new initiatives to enhance responsible gaming efforts, including renewing its State Council Funding Program and launching a national advertising campaign. The company has allocated over $500,000 to various state problem gambling councils and is investing more than $10 million in responsible gaming advertising. The My Stat Sheet tool, which provides players with personalized gaming data, has seen widespread use, promoting informed gaming choices.

Analysts have noted DraftKings’ strategic advancements, such as improved hold rates and reduced promotional expenses, which are expected to help the company meet its financial goals for 2025. The company’s strong start to the year, with January’s performance surpassing expectations, has been highlighted as a positive indicator of its growth trajectory. These developments reflect DraftKings’ ongoing commitment to responsible gaming and its strategic efforts to sustain profitability in the competitive online sports betting market.

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