Zuckerberg and another executive sold shares about $20 above where they were trading Tuesday.Analysts are not suggesting anything nefarious behind the regularly scheduled sales… However, the sheer volume of the selling can amount to an overhang on the stock at a time when it could use all the support it can get.
Zuckerberg has sold more Facebook stock in the last 3 months than any insider at any other company
- In the two weeks before Facebook’s latest struggles, CEO Mark Zuckerberg sold 1.14 million shares as part of regularly scheduled programs.
- That was the most insider selling for any public company, going back as far as three months, according to Argus Research’s Vickers Weekly Insider.
- Zuckerberg had promised to sell tens of millions of shares to fund philanthropic efforts.
- Analysts don’t believe there was anything nefarious behind the insider selling, which are part of regularly scheduled plans.
CNBC is reporting:
“The insiders use Rule 10b5-1 to sell on a regular basis. There are trading plans that they adopt and then they sell shares in a methodological way,” said Ben Silverman, director of research at InsiderScore. “I don’t see a connection between the insider selling and the news that has come out in the last few days.”
Still, investors and analysts who make buying and selling decisions based on executive stock moves give these plans some weight despite the benign status companies try to assign them.
“They can cancel the plans any time they want,” Silverman said. “Obviously [it’s] something we’ll look for in the wake of what’s going on and see if there’s any decrease in the insider selling volume in the near term.”