On August 24, 2012 Facebook co-founder disclosed the sale of 900,000 shares of Facebook stock over a six business days period. The Facebook co-founder began selling his stock immediately following the “lockup” period given to all employees following an initial public offering (IPO).
According to Securities and Exchange Commission (SEC) filings the Facebook co-founder is continuing to sell off his stake in the company, selling 450,000 more shares from Monday through Wednesday.
Moskovitz still owns more than 130 million Facebook shares which he could eventually sell at hire prices. The co-founder has been selling his current FB shares for prices from $19.00 to $19.49 per share, far below the company’s IPO price of $34.
The “lockup” period of three months was meant to help control the price of Facebook shares after they were released to the general public, however with Facebook losing value on a regular basis many employees have begun to quickly shed their stock holdings after the companies market capitalization fell to $42.6 billion.
On November 14 a lockup on 1.22 billion IPO shares will expire, allowing employees to flood the market with even more Facebook shares.
While investor confidence has not led to a resurgence in Facebook share prices the company’s stock performance has improved since August 17 when its stock reached its all-time low.
Analysts have warned that Facebook shares could plummet should an increasing number of Facebook employees and trades begin to unload Facebook shares en masse.
Do you think Facebook shares are still overvalue or has the company finally reached a realistic trading price and market valuation?