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Harry Sloan, Insider at Draftkings (NASDAQ:DKNG), made a large insider buy on November 16, according to a new SEC filing.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Tuesday showed that Sloan purchased 50,000 shares of Draftkings at at a price of $39.52. The total transaction amounted to $1,976,000.
Following the transaction, Sloan now owns 63,035 shares of the company, worth $2,376,734.00.
Draftkings shares are trading down 0.44% at $37.7 at the time of this writing on Thursday morning.
Why Insider Transactions Are Important
Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.
In legal terms, an "insider" refers to any shareholder who owns at least 10% of a company. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
Important Transaction Codes
Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates the insider may have been forced to sell shares in order to receive compensation that had been promised upon being hired by the company.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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