DraftKings Inc. and some early investors, including New England Patriots owner Robert Kraft, are taking advantage of the stock’s 264 percent surge from an April debut to sell a combined 32 million shares.

The offering, underwritten by Credit Suisse Securities LLC and Goldman Sachs Group, will include 16 million shares sold by DraftKings while the other half are being offered by some investors, the online gaming company said in a statement. Boston-based DraftKings said its proceeds from the offering will be used for general corporate purposes.

DraftKings shares closed at a record high $63.78 on Friday, up more than 260 percent since April and 56 percent above the price when 40 million shares were offered at $40 each in June. The stock fell 5.1 percent Monday to close at $60.55 after news of the latest planned share sales.

Shalom Meckenzie, a billionaire Israeli executive who merged his company with DraftKings in April, led investors by registering to sell 8.5 million shares. Meckenzie will still be among DraftKings’s largest shareholders despite dumping more than $500 million in stock. Raine Capital LLC and Robert Kraft were among others who filed to sell.

There’s been no shortage of enthusiasm for DraftKings shares in the midst of bubbling excitement for the broader online sports betting industry in the United States as the pandemic depresses activity at traditional casinos. Evercore ISI estimated last month that DraftKings’ addressable market would quadruple by the start of the 2022 National Football League season.

The company’s offerings have prompted sell-side analysts to leapfrog one another, slapping on fresh price targets that are each higher than the one before. DraftKings has made waves by spending millions on partnerships with Walt Disney Co.’s ESPN network as well as with a range of professional sports teams, including the New York Giants and

Shares of DraftKings are lower on Monday after the sports-gambling company said it and holders would sell a total of 32 million shares.

The company will offer 16 million shares and certain holders will offer another 16 million.

DraftKings, Boston, said it intended to use the proceeds of its sale for general purposes.

At last check the shares were down 4.8% to $60.67.

DraftKings and the holders will give the underwriters a 30-day option to purchase up to an additional 4.8 million shares.

Credit Suisse Securities (USA) and Goldman Sachs are joint book-running managers and representatives of the underwriters for the offering.

Last week, Needham analyst Brad Erickson initiated coverage of DraftKings with a buy rating and Wall-Street-high price target of $70 a share. 

Erickson said DraftKings was “one of the leading beneficiaries as online sports betting and gambling take off in the U.S. — an opportunity we size between $42 [billion] and $58 billion annually longer term.”

Online sports betting has taken off in the U.S. after the Supreme Court struck down a 1992 federal law banning sports betting at the federal level. A number of states have enacted sports-betting legislation.

“We expect the regulatory tailwind to persist and believe online providers’ access to data creates a structurally better user experience vs. brick and mortar,” Erickson said.

For DraftKings specifically, Needham’s analyst sees its “datacentric approach to customer acquisition” as a catalyst that will help the company “regularly exceed top-line forecasts.”

Last month, the company signed a content and marketing agreement with Walt Disney  (DIS) – Get Report sports network ESPN.

DraftKings said the deal allowed it to integrate its products across ESPN’s digital platforms, while also giving it the chance to provide content to the network’s studio-produced sports programs. 

DraftKings  (DKNG) – Get Report stock continues to move well. While the shares are down about 1% on Tuesday, the stock had earlier hit an all-time high in the session at $59.45.

Even with Tuesday’s dip — which comes as some NFL teams suspend activity due to the coronavirus — DraftKings stock is still up more than 5.5% for the week.

What’s going on in the broader market doesn’t seem to matter. While the indexes have been swaying, DraftKings and Penn National (PENN) – Get Report investors don’t seem to care.

Admittedly, these names don’t necessarily trade without volatility. But the pullbacks have been shallow as buyers continue to gobble up the dips.

Let’s take a closer look at DraftKings now that the stock has pushed up to new highs.

Trading DraftKings Stock

Daily chart of DraftKings stock.

Daily chart of DraftKings stock.

Earlier this month, the stock pushed up to the 161.8% extension, where it promptly met resistance. While DraftKings stock held up for a few days, sellers were eventually able to push it lower.

But that dip didn’t last long, with the 10-day moving average ultimately holding as support. With a multiday rally unfolding, DraftKings stock on Monday was able to close above the 161.8% extension.

The bulls would love to see this extension hold as support. If that remains the case, they will be looking for a rotation through Tuesday’s high and north of $60. On the upside, see how the shares handle the two-times range extension up at $62.04.

Ultimately, the bulls will likely be looking for a push up to the 261.8% extension, near $72.70.

On the downside, look to see how DraftKings stock handles another dip to the 10-day moving average. Below could open the door to an eventual retest of