DraftKings CLO exercises options, sells 62,500 shares
DraftKings Inc. Chief Legal Officer Dodge R. Stanton reported an option exercise and related stock sales.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
4
Rhea-AI Filing Summary
DraftKings Inc. Chief Legal Officer Dodge R. Stanton reported an option exercise and related stock sales. He exercised stock options covering 62,500 shares of Class A Common Stock at $2.95 per share, paying the aggregate exercise price in cash.
On the same date, he sold a total of 62,500 shares of Class A Common Stock in open-market transactions at weighted average prices of $29.64 and $29.97 per share. The sales were made under a pre-arranged Rule 10b5-1 trading plan adopted on March 3, 2026, and the reported prices reflect weighted averages over multiple trades within disclosed price ranges.
Insider Trade Summary 10b5-1
Exercise and Sale: 62,500 shares ($1.67M approx. pre-tax spread)
Exercise and Sale
4 txns
Insider
Dodge R Stanton
Role
Chief Legal Officer
Sold
62,500 shs ($1.86M)
Approx. gross sale proceeds
$1.86M
Approx. exercise cost
$184K
Approx. pre-tax spread
$1.67M
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Stock Option | 62,500 | $0.00 | $0.00 |
| Exercise | Class A Common Stock | 62,500 | $2.95 | $184K |
| Sale | Class A Common Stock | 54,311 | $29.64 | $1.61M |
| Sale | Class A Common Stock | 8,189 | $29.97 | $245K |
Holdings After Transaction:
Stock Option — 1,273,243 contracts (Direct);
Class A Common Stock — 556,258 shares (Direct)
Footnotes (5)
- F1. The Reporting Person acquired shares of Class A Common Stock of the Issuer upon the exercise of stock options and payment of the aggregate exercise price in cash.
- F2. The reported sale was made pursuant to a pre-arranged program for selling shares of Class A Common Stock adopted on March 3, 2026 pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934.
- F3. The price reported in Column 4 is a weighted average price. These shares were sold in multiple transactions at prices ranging from $28.90 to $29.89, 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 ranges set forth in footnotes 3 and 4 to this Form 4.
- F4. The price reported in Column 4 is a weighted average price. These shares were sold in multiple transactions at prices ranging from $29.90 to $30.07, inclusive. See the last sentence of footnote 3 to this Form 4 above.
- F5. These stock options were granted on November 7, 2017. As of the date hereof, all such remaining stock options have vested.
Key Figures
Shares sold: 62,500 shares
Weighted average sale price 1: $29.64 per share
Weighted average sale price 2: $29.97 per share
+4 more
7 metrics
Shares sold
62,500 shares
Class A Common Stock sold in open-market transactions on 2026-06-11
Weighted average sale price 1
$29.64 per share
First block of Class A Common Stock sales
Weighted average sale price 2
$29.97 per share
Second block of Class A Common Stock sales
Options exercised
62,500 shares
Stock options converted into Class A Common Stock
Option exercise price
$2.95 per share
Exercise price for stock options granted on November 7, 2017
Option expiration
2027-11-02
Expiration date for exercised stock options
Net share direction
-62,500 shares
Net sell direction from transaction summary
Key Terms
Rule 10b5-1, weighted average price, stock options, Class A Common Stock, +1 more
5 terms
Rule 10b5-1 regulatory
"The reported sale was made pursuant to a pre-arranged program for selling shares ... pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934."
Rule 10b5-1 is a regulation that allows company insiders to buy or sell their shares at predetermined times, even if they have access to non-public information. It acts like setting a schedule in advance for transactions, helping prevent accusations of unfair trading. This rule provides a way for insiders to plan trades transparently, giving investors confidence that these transactions are not based on hidden information.
weighted average price financial
"The price reported in Column 4 is a weighted average price. These shares were sold in multiple transactions..."
Weighted average price is the average price of a security where each trade or component is counted according to its size, so bigger trades pull the average more than smaller ones. Think of it like calculating the average cost of a grocery haul where items you bought more of have greater influence on the final per-item cost. Investors use it to understand the true average price paid or received, judge execution quality, and compare trading performance against market movement.
stock options financial
"The Reporting Person acquired shares ... upon the exercise of stock options and payment of the aggregate exercise price in cash."
Stock options are agreements that give a person the right to buy or sell a company's stock at a specific price within a certain time frame. They are often used as a reward or incentive, similar to a coupon that can be used later if the stock price rises, allowing the holder to make a profit.
Class A Common Stock financial
"The Reporting Person acquired shares of Class A Common Stock of the Issuer upon the exercise of stock options..."
Class A common stock is a category of a company’s shares that carries a specific set of ownership rights—most commonly defined voting power and claims on dividends—set out in the company’s charter. For investors it matters because the class determines how much influence you have over corporate decisions, the share’s likely dividend and trading behavior, and how it compares in value to other share classes, like choosing a particular seat with different privileges at the company’s decision-making table.
pre-arranged program regulatory
"The reported sale was made pursuant to a pre-arranged program for selling shares of Class A Common Stock adopted on March 3, 2026..."
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What insider transactions did DraftKings (DKNG) report for Dodge R. Stanton?
DraftKings reported that Chief Legal Officer Dodge R. Stanton exercised stock options for 62,500 Class A shares at $2.95 and sold 62,500 shares in open-market transactions at weighted average prices of $29.64 and $29.97, all on the same date.
Was the DraftKings (DKNG) insider sale by Dodge R. Stanton pre-planned?
Yes. The reported sales by Dodge R. Stanton were executed under a pre-arranged trading program adopted on March 3, 2026 pursuant to Rule 10b5-1, indicating the sale timing was set in advance rather than being a discretionary, same-day decision.
What stock options did Dodge R. Stanton exercise in this DraftKings (DKNG) Form 4?
He exercised stock options granted on November 7, 2017 to acquire 62,500 shares of Class A Common Stock at an exercise price of $2.95 per share. The filing notes all remaining stock options from that grant were fully vested as of the transaction date.
Did Dodge R. Stanton pay cash to exercise his DraftKings (DKNG) options?
Yes. The filing states that Stanton acquired Class A Common Stock upon exercising stock options and paid the aggregate exercise price in cash, rather than using a cashless exercise or share withholding structure to fund the option exercise.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Accepted by SEC EDGAR
Learn about SEC filing dates