Two DraftKings insiders bought shares this week as the stock sank to a 52-week closing low in the wake of its Q3 earnings report.
CFO Alan Ellingson and Director Gregory Wendt both bought the dip amid a selloff driven by DraftKings’ plans to ramp up prediction market investments. Meanwhile, one of the company’s largest institutional investors disclosed that it reduced its stake during the third quarter.
Although the market’s reaction to the investment plan was negative, DraftKings reported mostly positive results, including growth in its core sports betting and online casino businesses and a 2027 adjusted EBITDA forecast of up to $1 billion.
DraftKings shares have gradually recovered since closing at $18.51 Friday in the wake of its earnings report. The stock closed at $19.12 Thursday.
Details on DraftKings share buys
The DraftKings CFO wasted little time, buying 18,908 shares on Monday, increasing his stake in the company by nearly 10% to 214,692 shares.
Ellingson paid an average of $18.51 per share, with prices ranging from $18.49 to $18.52, for a total of nearly $350,000.
Wendt waited until Wednesday to buy 5,000 shares, increasing his stake by more than 27% to 22,920 shares.
The DraftKings director paid $19.76 per share, spending nearly $100,000.
AQR lowers its holdings
On Thursday, AQR Capital Management disclosed that it had reduced its stake in DraftKings during the third quarter.
AQR owned just over 20 million shares as of Sept. 30, representing a 4.04% stake in DraftKings. That was down from 5.98% at the end of June, when it owned 29.7 million shares.
The June filing was AQR’s first of the year, suggesting it crossed the 5% ownership reporting threshold at some point during the second quarter. Institutional investors are not required to explain changes in their holdings, so the reason AQR sold nearly 10 million shares during the third quarter remains unclear.
DraftKings shares have had a rough 2026 after closing 2025 at $34.46. The stock fell to $21.76 following the release of its Q4 2025 earnings report in February.
Shares recovered somewhat in Q2, closing June at $25.26, but the rally faded in Q3 as the stock finished September at $19.00.
