Wyoming Buys Into DraftKings as Insiders Cash Out

The State of Wyoming just placed a bet of its own on sports-betting giant DraftKings Inc. (NASDAQ: DKNG). According to filings, the state picked up 12,635 shares worth about $420,000 during the first quarter, adding its name to the list of institutional investors riding the DraftKings wave, MarketBeat reports.

But while Wyoming is buying, some insiders are cashing out in a big way. Director Ryan R. Moore sold more than 76,000 shares, cutting his personal stake by a jaw-dropping 99.5%. CFO Alan Wayne Ellingson also trimmed nearly 26% of his holdings. Altogether, company insiders unloaded over 700,000 shares worth more than $30 million in the past three months.

The sell-off hasn’t slowed the company’s momentum. In its latest earnings report, DraftKings brought in $1.51 billion in revenue, easily topping Wall Street’s $1.39 billion forecast and marking 36.9% year-over-year growth. Earnings per share came in at $0.30, nearly double analysts’ expectations.

Even with the strong results, DraftKings stock has been choppy. Shares recently traded around $47.91, down slightly on the day but still well above their 200-day average. Over the past year, the stock has ranged from $29.64 to $53.61, with analysts setting an average price target of about $54.50 and labeling it a “Moderate Buy.”

Wyoming’s move is small compared to the billions held by major funds, but it highlights how even state investment offices are eyeing sports betting as a growth sector. At the same time, heavy insider selling raises questions about whether DraftKings’ high-flying stock is due for a cooldown.

For now, the company is still one of the most-watched players in digital gaming — and MarketBeat is already teasing its list of the top five stocks to own in October, hinting DraftKings may not even make the cut.