Travis Kalanick sells most of his shares in UBER
Travis Kalanick (Former CEO of UBER) sold another 12.8 million shares ($383 million worth) in just 3 days between December 16 to December 18, further decreasing its post in the company he founded, according to a Securities and Exchange Commission filing. Kalanick sold 7.8 million shares on December 16 alone, which makes that day of his the biggest selling day since November 20, when he sold more than 10 million shares across two trades.
The shares he has sold up till now benefited him of more than $2.4 billion. Out of 22.6 million shares he used to have, Kalanick now holds only about 8.2 million shares in the ridesharing company.
After the 180 days of IPO lockup comes to end in November, Mr. Kalanick kicked off his selling streak immediately after. Early Investor was able to sell stocks for the first time on November 6, and the continuous sales bring Uber’s stock price to record low.
If he kept on selling his shares, he will be removed from his position in the director’s board, and existing directors will have to face a shareholder vote for re-election in May 2020.
The rapid selling of Kalanick doesn’t show that he is confident about Uber’s stock getting higher in the future, despite the efforts of it’s current CEO Dara Khosrowshahi.
“When insiders, current and past, sell, they normally signal bad news,” said Meziane Laser, professor of finance at City University’s Cass Business School. “The market is likely to follow him.”
Kalanick has since moved on to CloudKitchens, a venture that converts the commercial space into leasable kitchens for delivery-only restaurants. Kalanick invested $300 million in the company. This company has also received a $400 million investment from Saudia Arabi’s sovereign-wealth fund in January. The Saudi backing valued CloudKitchens at about $5 billion.
After selling around $1.4bn in Uber shares to SoftBank in a private transaction in early-2018, Mr. Kalanick has self-financed much of CloudKitchens’ expansion around the world, including to Europe, the Middle East, and Asia
On Thursday, Uber opened at $30 per share, down abruptly 28% year-to-date. Analysts say, there are 27 “Buy” ratings, 11 “Hold” ratings, and 1 “Sell” rating, with an agreed price target of $44.03, according to Bloomberg data.
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