DKNG Form 4: Kalish exercises options at $3.29 and executes 10b5-1 sales ~ $42.8
Rhea-AI Filing Summary
Matthew Kalish, President - DraftKings North America, reported multiple equity transactions. He received 28,309 shares from vested RSUs and had 13,688 shares withheld for taxes. On 08/11/2025 and 08/12/2025 he exercised stock options to acquire 210,000 shares on each date at an exercise price of $3.29 and contemporaneously sold 210,000 shares on each date at weighted-average prices of $42.68 and $42.90, respectively. Following the reported transactions the Form shows beneficial ownership figures of 4,400,233 shares after acquisitions and 4,190,233 shares after the sales. The filing also discloses indirect holdings of 196,309 and 2,938 shares held in family trusts.
Positive
- Acquired shares via option exercises totaling 420,000 shares at a $3.29 exercise price, demonstrating vesting/option realization.
- Received 28,309 shares from RSU vesting (net of withholding arrangements), increasing share ownership before subsequent sales.
- Filing discloses indirect holdings of 196,309 and 2,938 shares in family trusts, enhancing transparency of beneficial ownership.
Negative
- Sold 420,000 shares in aggregate under a Rule 10b5-1 plan at weighted-average prices around $42.7–$42.9, reducing direct shareholdings.
- 13,688 shares were withheld to satisfy tax obligations upon RSU vesting, lowering the net issuance received by the reporting person.
Insights
TL;DR: Insider exercised low-strike options and executed large pre-arranged sales, leaving roughly 4.19M shares beneficially owned.
The filing documents material option exercises at a $3.29 strike for two tranches of 210,000 shares each and near-simultaneous sales at weighted-average prices near $42.7–$42.9. The trades include RSU vesting of 28,309 shares with 13,688 withheld for taxes. Such activity increases realized liquidity for the reporting person while leaving reported beneficial ownership at 4,190,233 shares after the sales. Transactions were executed under a Rule 10b5-1 plan where specified.
TL;DR: Transactions executed under pre-arranged plan and standard vesting/option mechanics; disclosure is routine and complete.
The Form 4 discloses RSU vesting, option exercises, cash payment of exercise prices and tax withholdings, plus sales conducted pursuant to a Rule 10b5-1 selling program. The report provides exercise prices ($3.29), weighted-average sale prices ($42.39–$43.18 and $42.48–$43.18 ranges cited), and post-transaction beneficial ownership figures. From a governance standpoint, the filing documents compliance with reporting obligations and identifies indirect holdings via family trusts.
Insider Trade Summary
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Stock option | 210,000 | $0.00 | -- |
| Exercise | Class A Common Stock | 210,000 | $3.29 | $691K |
| Sale | Class A Common Stock | 210,000 | $42.90 | $9.01M |
| Exercise | Stock option | 210,000 | $0.00 | -- |
| Exercise | Class A Common Stock | 210,000 | $3.29 | $691K |
| Sale | Class A Common Stock | 210,000 | $42.68 | $8.96M |
| Exercise | Restricted Stock Units | 28,309 | $0.00 | -- |
| Exercise | Class A Common Stock | 28,309 | $0.00 | -- |
| Tax Withholding | Class A Common Stock | 13,688 | $42.88 | $587K |
| holding | Class A Common Stock | -- | -- | -- |
| holding | Class A Common Stock | -- | -- | -- |
Footnotes (1)
- No shares of Class A Common Stock were transferred or sold upon the vesting of the restricted stock units ("RSUs") other than to the Issuer to satisfy withholding taxes. The Reporting Person received the net of the 28,309 shares of Class A Common Stock underlying the RSUs listed in Table II, and 13,688 shares of Class A Common Stock withheld by the Issuer. Each RSU represents a contingent right to receive one share of the Issuer's Class A Common Stock. The Reporting Person acquired shares of Class A Common Stock of the Issuer after the exercise of stock options and paid the aggregate exercise price and the tax withholding in cash. The reported sales were made pursuant to a pre-arranged program for selling shares of Class A Common Stock adopted on November 27, 2024 pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934. The price reported in Column 4 is a weighted average price. These shares were sold in multiple transactions at prices ranging from $42.39 to $43.12, inclusive. The Reporting Person has provided to the Issuer, and undertakes to provide any security holder of the Issuer or the staff of the Securities and Exchange Commission, upon request, full information regarding the number of shares sold at each separate price within the range set forth in footnotes 4 and 5 to this Form 4. The price reported in Column 4 is a weighted average price. These shares were sold in multiple transactions ranging from $42.48 to $43.18, inclusive. See the last sentence of footnote 4 to this Form 4 above. On February 9, 2022, the Reporting Person was granted 452,940 RSUs vesting quarterly over four (4) years. These stock options were granted on May 3, 2018. As of the date hereof, all of such remaining stock options have vested.
