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DraftKings Insiders Dump $596 Million Of Stock On Unsuspecting Robinhood Daytraders 

2020 06 26 09 55 26

DraftKings Insiders Dump $596 Million Of Stock On Unsuspecting Robinhood Daytraders 

Tyler Durden

Fri, 06/26/2020 – 12:16

DraftKings Inc. filed several Form 4s with the Securities and Exchange Commission this week regarding insider selling by the president of the company, Paul Liberman, and others. 

Insider Transactions 

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It turns out, as more than 100,000 Robinhood daytraders panic bought DraftKings since its Nasdaq debut in April, soaring 237% in months – Liberman and other insiders dumped a whopping $596 million worth of shares.

Robinhood Track 

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On the pump, Liberman sold $31 million worth of stock, with about $15 million left. CEO Jason Robin sold $70 million worth of stock, while director Hany Nada liquidated $37 million. 

Clearly, by now, readers should understand the parabolic rise in DraftKings’ shares was nothing more than a spectacular pump – as what comes next is likely the dump. 

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But wait, there are more insiders dumping stock: Director Steven Joseph Murray sold $40 million worth of shares, while directors Shalom Meckenzie and John Salter sold collectively around $125 million. 

Howard Lindzon, the co-founder of StockTwits, recently noted the meteoric rise in DraftKings share price happened at a time when most sporting events were canceled because of the virus pandemic:

 “The chart of the day is Draft Kings, which has quadrupled to $12 billion now since it reverses merged into a shell and then changed ticker to $DKNG…unbelievable outcome considering the long regulated road and the fact that NO SPORTS !? Face with tears of joy.”

What goes up must come down: Robinhood traders will soon learn a painful lesson on gravity. 


Source: zerohedge.com

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