DraftKings (DKNG) stock has taken a beating over the last year and has had a horrible start to 2026 so far. However, investors recently received some good news after a U.S. Securities and Exchange Commission (SEC) filing revealed that one of the company’s directors had purchased stock worth $2.19 million. The director in question, Harry Evans Sloan, bought 100,000 shares of DKNG stock at an average price of $21.85 per share on Feb. 17. His stake in the company is now 350,219 shares after the recent transaction.
This transaction is significant in the context of the current share price. DraftKings is trading near its 52-week lows, but that’s not all. DKNG stock has lost 50% of its value in the last six months and is down 31% so far this year. If ever investors needed some reassurance regarding the company’s prospects, Sloan just provided it. Having said that, management will need to do more to reassure investors about DraftKing’s dismal 2026 outlook and slowing growth.
DraftKings is a sports entertainment company that offers products like daily fantasy sports, online betting, online casino, media, and other consumer products. The company is based in Boston, Massachusetts, and was founded in 2012.
Volatility has been a common theme for DKNG stock shareholders throughout the last year, with shares registering a 52-week high of $48.78 and a 52-week low of $21.01. DKNG stock is currently down 46% in the last 12 months and down 31% year-to-date (YTD). This is in stark contrast to the VanEck Video Gaming and eSports ETF’s (ESPO) 2.5% gain over the last year and 11% drop YTD.
The consensus projected EPS growth rate for DKNG looks impressive — 179% in 2027, 79% in 2028, and 46% in 2029 is by no means ordinary. The company has, however, repeatedly missed on earnings estimates. The reason analysts are still bullish on DKNG stock is the broader industry’s growth. Online sports betting, currently a $49.7 billion industry, is expected to grow at a 13.2% compound annual growth rate (CAGR) until 2031. The broader online gambling and sports betting market is expected to more than double in the same period. Considering the fact that DraftKings is still early in monetization, the multibagger potential is there.
