In Just Three Months, Zuckerberg Sells More Shares than any other Company!
Facebook is facing financial struggles. Before the recent occurrence, two weeks ago, the online platform witnessed 1.14 million sales of its shares, by its co-founder, Mark Zuckerberg. The stocks sold was part of the company’s regular schedule. However, according to the Weekly Insider, the move was the biggest marketing move done by any public company in three months past.
According to the analysts, this is the time that Facebook needs all the help it can get, selling of that volume of shares could lead to the overhang of stock along the line.
It is no secret that the shares of the leading Social Media platform dropped about 6.77% to territory correction. As if that wasn’t enough, on Monday, the first day for trading, the company suffered from the scandal that involved 50 million users’ account. All these events raised the concerns regarding the firm’s user privacy. Because of this issue, the company traded its shares as low as 5.3%, and on Tuesday afternoon, it was close to $153 per share.
The Biggest Sale so far
Below lies an entry by Argus Vickers of the 25 largest stocks sold mostly by insiders during the last 90 days.
Facebook ( FB ) ― 1180224
RealPage ( RP) ― 542137
Vonage ( VG ) ― 538000
Oritani Financial ― 513377
Delek US ( DK ) ― 360770
Vivint Solar ( VSLR) ― 339543
Alnylam Pharmaceuticals ― 221954
Urban Outfitters ( URBN) ― 219759
Verisk Analytics ( VRSK ) ― 144809
National Instruments ( NATI) ― 144100
According to analyst Ben Silverman, the insiders utilize the Rule 10b5 for trading regularly. Shares are not randomly sold. Each insider sells his shares methodically, based on a choosing trading plan. However, he laments that the current news making the headlines in recent days don’t agree with any insider selling.
According to him, analysts and investors are key players. He said that this sect of people who finalize their selling or buying decision-based on the administrative capital, add weight to the plan. This condition of things is regardless of the status firms appoint them.
Silverman said that these plans could be canceled anytime the analysts or investors desire. According to him, this is what they seek out because of the issues that are occurring. So, they keep their eyes open to notice any decrease in the near term, volume, of insider selling.
The Analyst for Insider Weekly said that there are times when firms give their executives stocks as compensation. They can sell these stocks in two ways: either by their choice or think of a plan that suits them from the SEC rule 10b5-1.
According to Vickers information, Facebook is not the only company that crossed the half a million volume in insider selling through the past three months. In fact, firms like RealPage, Vonage, and oriental Financials, had sales beyond half a million within the recent days.
But Silverman further expressed that the stocks other firms sold did not come close to that of Facebook. According to him, Facebook sales accounted for the majority by a long margin.
What Mark has to Say about the Spending?
Mark Zuckerberg has made his intention to continue funding his philanthropic effort known. According to the founder of Facebook, plans have been made to shed off about 35 million going to 75 million in the following 18 months. Thus became necessary after the promise made by him and his wife, Pricilla Chan to give out 99% of their company stake to the Chan Zuckerberg foundation.
Presently, the Chan Zuckerberg Initiative has focused on the battle of eradicating the lack of proper education in various parts of the world where that is the order of the day. It also works to assist people with different health-related issues.
Based on that decision, Mark sold about 228,400 of his shares between March 8 and March 9. However, on March 12 to March 14, the Facebook Chairman sold about 220,000 to 245,00 shares. When properly analyzed, that amounts to over 1.14 million shares for a $183 average price which has a payout of $210 million.
According to S&P Market Intelligence firm, as of Friday, Mark Zuckerberg still had 13.53% of Facebook common shares which when converted stood close to 393.1 million. However, the result was felt on his net worth. Forbes and Bloomberg Billionaire Index captured the fall of Mark’s wealth from $75 billion to $66 billion. Hence, losing about 9 billion.
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