Three months ago when Facebook went public, the social networking site saw a drop in its stocks, which made many insiders sell their shares. The latest in the news is Dustin Moskovitz, co-founder, Facebook, who is shedding off his sizable stakes in the social networking site.
Moskovitz left Facebook in 2008 to find Asana. On Tuesday, he completed 12 different trades in 150,000-share increments during a two-week period starting Aug. 17, ending on Sept. 4, 2012.
As per multiple filings with the Securities and Exchange Commission, the 28-year-old entrepreneur and Facebook insider has reportedly sold 1.8 million shares for $34.5 million. This accounts to around 450,000 shares of the social networking so far this week, reducing his hold to 6.15 million Class A stock, which has less voting than Class B stock. He has 126.2 million Class B shares. The Class B shares can be changed for sale to Class A shares at a one-to-one ratio.
The trades were completed at price ranging from $20.08 to $17.56 per share.
Earlier, last month, Peter Thiel, first outside investor of Facebook also dumped his remaining holdings in the social networking site with a gain of $395.8 million.
The news could be worrisome for investors as all insiders sell their shares. But thankfully not everyone is stripping off of their stakes.
Mark Zuckerberg, CEO, Facebook said in a filing that he is committed to hold all his stakes in the firm for at least another year.
Marc Andreessen and Donald Graham, Board members of Facebook also specified that they would only sell enough shares to cover their tax liabilities.
Facebook went public in May with an IPO of $38 a share. The social networking site saw a decline since then, following the speculation of other investors selling off their shares.