DraftKings (NASDAQ: DKNG) CFO reports RSU vesting and share withholding for taxes
Rhea-AI Filing Summary
DraftKings Inc. Chief Financial Officer Alan Ellingson reported routine equity compensation activity involving restricted stock units (RSUs). On June 1, 2026, multiple RSU grants vested and were converted into Class A Common Stock, reflected as derivative exercises coded “M.”
To cover tax obligations on these vestings, the company withheld shares in several “F” code transactions at a price of $26.33 per share, as described in the footnotes. No shares were sold into the market; the dispositions were solely to the issuer for withholding taxes. After these transactions, Ellingson directly held 163,411 shares of Class A Common Stock, and the filing shows no remaining derivative positions.
Positive
- None.
Negative
- None.
Insider Trade Summary
Net Buyer: 14,545 shares
Net Buy
12 txns
Insider
Ellingson Alan Wayne
Role
Chief Financial Officer
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Restricted Stock Units | 2,140 | $0.00 | $0.00 |
| Exercise | Restricted Stock Units | 742 | $0.00 | $0.00 |
| Exercise | Restricted Stock Units | 5,301 | $0.00 | $0.00 |
| Exercise | Restricted Stock Units | 19,920 | $0.00 | $0.00 |
| Exercise | Class A Common Stock | 2,140 | $0.00 | $0.00 |
| Exercise Price or Tax Liability | Class A Common Stock | 1,003 | $26.33 | $26K |
| Exercise | Class A Common Stock | 742 | $0.00 | $0.00 |
| Exercise Price or Tax Liability | Class A Common Stock | 359 | $26.33 | $9K |
| Exercise | Class A Common Stock | 5,301 | $0.00 | $0.00 |
| Exercise Price or Tax Liability | Class A Common Stock | 2,564 | $26.33 | $68K |
| Exercise | Class A Common Stock | 19,920 | $0.00 | $0.00 |
| Exercise Price or Tax Liability | Class A Common Stock | 9,632 | $26.33 | $254K |
Holdings After Transaction:
Restricted Stock Units — 368,723 shares (Direct);
Class A Common Stock — 176,819 shares (Direct)
Footnotes (8)
- F1. 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 2,140 shares of Class A Common Stock underlying the RSUs listed in Table II, and 1,003 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.
- F2. No shares of Class A Common Stock were transferred or sold upon the vesting of the RSUs other than to the Issuer to satisfy withholding taxes. The Reporting Person received the net of the 742 shares of Class A Common Stock underlying the RSUs listed in Table II, and 359 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.
- F3. No shares of Class A Common Stock were transferred or sold upon the vesting of the RSUs other than to the Issuer to satisfy withholding taxes. The Reporting Person received the net of the 5,301 shares of Class A Common Stock underlying the RSUs listed in Table II, and 2,564 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.
- F4. No shares of Class A Common Stock were transferred or sold upon the vesting of the RSUs other than to the Issuer to satisfy withholding taxes. The Reporting Person received the net of the 19,920 shares of Class A Common Stock underlying the RSUs listed in Table II, and 9,632 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.
- F5. On March 1, 2023, the Reporting Person was granted 34,245 RSUs vesting quarterly over four (4) years from March 1, 2023.
- F6. On February 16, 2024, the Reporting Person was granted 11,868 RSUs vesting quarterly over four (4) years from March 1, 2024.
- F7. On February 10, 2025, the Reporting Person was granted 84,807 RSUs vesting quarterly over four (4) years from March 1, 2025.
- F8. On February 17, 2026, the Reporting Person was granted 318,725 RSUs vesting quarterly over four (4) years from March 1, 2026.
Key Figures
RSU exercises: 28,103 shares
Tax-withholding shares: 13,558 shares
Withholding price: $26.33 per share
+5 more
8 metrics
RSU exercises
28,103 shares
Total shares acquired via code M exercises
Tax-withholding shares
13,558 shares
Total shares withheld in code F transactions
Withholding price
$26.33 per share
Price used for tax-withholding dispositions
Post-transaction holdings
163,411 shares
Class A Common Stock directly held after transactions
RSU grant 2023
34,245 RSUs
Granted March 1, 2023, vesting quarterly over four years
RSU grant 2024
11,868 RSUs
Granted February 16, 2024, vesting quarterly over four years
RSU grant 2025
84,807 RSUs
Granted February 10, 2025, vesting quarterly over four years
RSU grant 2026
318,725 RSUs
Granted February 17, 2026, vesting quarterly over four years
Key Terms
Restricted Stock Units, withholding taxes, contingent right, vesting quarterly, +1 more
5 terms
Restricted Stock Units financial
"The Reporting Person received the net of the 2,140 shares of Class A Common Stock underlying the RSUs listed in Table II"
Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.
withholding taxes financial
"No shares of Class A Common Stock were transferred or sold upon the vesting of the RSUs other than to the Issuer to satisfy withholding taxes."
Withholding taxes are amounts a payer or government takes out of payments — such as wages, interest, or dividends — before the recipient gets the money, functioning like a cashier keeping part of a bill to pay taxes on your behalf. For investors this matters because it reduces the cash they actually receive, affects net returns and yield calculations, and may require additional paperwork or treaty claims to recover or offset the withheld amount against final tax bills.
contingent right financial
"Each RSU represents a contingent right to receive one share of the Issuer's Class A Common Stock."
vesting quarterly financial
"On March 1, 2023, the Reporting Person was granted 34,245 RSUs vesting quarterly over four (4) years from March 1, 2023."
derivative security financial
"Exercise or conversion of derivative security"
A derivative security is a financial contract whose value comes from the price or performance of something else, such as a stock, bond, commodity, or market index. For investors it acts like an insurance policy or a wager: it can be used to protect against losses, lock in prices, or amplify gains and losses, so it can change a portfolio’s risk and potential return without owning the underlying asset directly.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What insider activity did DraftKings (DKNG) report for its CFO on this Form 4?
DraftKings reported that CFO Alan Ellingson had several restricted stock unit (RSU) awards vest and convert into Class A Common Stock, with related share withholdings to cover tax obligations. These are compensation-related entries, not open-market stock purchases or sales.
What do the RSU footnotes in the DraftKings (DKNG) Form 4 explain?
The footnotes explain that each RSU represents a contingent right to receive one Class A share and that, upon vesting, shares were issued net of amounts withheld for taxes. They also list prior RSU grants with quarterly vesting schedules starting in 2023 through 2026.