Liberman Paul 4
4 · DraftKings Inc. · Filed Feb 18, 2026
Research Summary
AI-generated summary of this filing
DraftKings (DKNG) Director Paul Liberman Exercises Options, Gifts Shares
What Happened
Paul Liberman, Director (President, Operations) at DraftKings (DKNG), exercised 400,000 stock options on Feb 18, 2026, paying $3.29 per share for a total exercise cost of $1,316,000. He also received 51,464 shares from vested RSUs (net after tax withholding), had 22,273 shares withheld to cover taxes (value reported $484,660), gifted 200,000 shares to a family revocable trust, and transferred 588,074 shares to another revocable trust for which he is lifetime beneficiary and sole trustee. Additionally, on Feb 17, 2026 he was granted 531,208 RSUs that vest quarterly over four years.
Key Details
- Dates & prices:
- Feb 18, 2026: Exercised 400,000 options at $3.29 — cash paid $1,316,000. (Derivative exercise)
- Feb 13, 2026: 51,464 RSU shares vested; 22,273 shares withheld for taxes (withheld value ~$484,660).
- Feb 18, 2026: Gifted 200,000 shares to the Rachel Nager Liberman 2015 Revocable Trust (no sale/proceeds).
- Feb 17, 2026: Granted 531,208 RSUs (vesting quarterly over 4 years).
- Feb 13–18, 2026: Transfer of 588,074 shares to the Paul Liberman 2015 Revocable Trust (no sale/proceeds).
- Shares owned after transaction: Not explicitly stated in this Form 4.
- Footnotes of note:
- F2: RSUs convert 1:1 to Class A common stock; net shares received after withholding were 51,464.
- F3/F4: Transfers/gifts were to revocable trusts (no purchases or sales).
- F5/F7: Options exercised were from 2018 grants; exercise price and tax withholdings were paid in cash.
- F6: New RSU grant vests over time.
- Filing timeliness: Form 4 filed Feb 18, 2026. Given the Feb 13–18 transaction window and the Feb 16 federal holiday (President’s Day), this filing appears timely (within the two-business-day requirement).
Context
- Option exercise: Liberman paid the exercise price in cash (not a cashless sale). The exercise converted options into shares rather than an immediate open‑market sale.
- Gifts and trust transfers: The 200,000-share gift and the 588,074-share transfer to revocable trusts are not sales and do not necessarily indicate a change in market sentiment. They are typically estate/planning moves.
- RSU grant: The 531,208 RSU award granted Feb 17 will vest over four years and is a future contingent right to shares (1 RSU = 1 share upon vesting).
Transaction codes (for quick reference): A = Award/Grant, M = Option exercise/conversion, G = Gift, F = Tax withholding.
Insider Transaction Report
Form 4
DraftKings Inc.DKNG
Liberman Paul
DirectorSee Remarks
Transactions
- Award
Class A Common Stock
[F1][F2][F3]2026-02-13+51,464→ 271,110 total - Tax Payment
Class A Common Stock
2026-02-13$21.76/sh−22,273$484,660→ 248,837 total - Gift
Class A Common Stock
[F4]2026-02-18−200,000→ 48,837 total - Gift
Class A Common Stock
[F4]2026-02-18+200,000→ 200,000 total(indirect: By Trust) - Exercise/Conversion
Class A Common Stock
[F5][F3]2026-02-18$3.29/sh+400,000$1,316,000→ 1,669,955 total(indirect: By Trust) - Award
Restricted Stock Units
[F1][F6]2026-02-17+531,208→ 531,208 total→ Class A Common Stock (531,208 underlying) - Exercise/Conversion
Stock Options
[F7]2026-02-18−400,000→ 1,111,843 total(indirect: By Trust)Exercise: $3.29Exp: 2028-05-03→ Class A Common Stock (400,000 underlying)
Holdings
- 213,597(indirect: By Trust)
Class A Common Stock
- 200,000(indirect: By Trust)
Class A Common Stock
- 100,000(indirect: By Trust)
Class A Common Stock
Footnotes (7)
- [F1]Each restricted stock unit ("RSU") represents a contingent right to receive one share of the Issuer's Class A Common Stock.
- [F2]Represents the vesting of the RSUs granted pursuant to the Issuer's 2020 Incentive Award Plan, which vested upon the achievement of certain performance goals. No shares of Class A Common Stock were transferred or sold upon the vesting of the RSUs other than to the Issuer to satisfy withholding taxes. The Reporting Person received the net of the 51,464 shares of Class A Common Stock underlying the RSUs listed in Table I, and 22,273 shares of Class A Common Stock withheld by the Issuer.
- [F3]Reflects the transfer of 588,074 shares of the Issuer's Class A Common Stock previously reported as directly held by the Reporting Person to the Paul Liberman 2015 Revocable Trust, a revocable trust of which the Reporting Person is the lifetime beneficiary and sole trustee. There was no purchase or sale of shares of Class A Common Stock in connection with the transfer.
- [F4]Represents a bona fide gift of 200,000 shares of Class A Common Stock previously reported as directly held by the Reporting Person to the Rachel Nager Liberman 2015 Revocable Trust. There was no purchase or sale of shares of Class A Common Stock or stock options in connection with the transfer.
- [F5]The Reporting Person acquired shares of Class A Common Stock of the Issuer upon the exercise of stock options and paid the aggregate exercise price and the tax withholdings in cash.
- [F6]On February 17, 2026, the Reporting Person was granted 531,208 RSUs vesting quarterly over four (4) years from March 1, 2026.
- [F7]These stock options were granted on May 3, 2018. As of the date hereof, all such remaining stock options have vested.
Signature
/s/ Faisal Hasan, attorney-in-fact|2026-02-18