Many of the biggest sales this quarter have come from technology executives. Mr Thiel, co-founder of data analytics group Palantir, sold $US175 million ($269 million) this month, according to regulatory disclosures, his biggest sale since offloading $US504.8 million of the company’s stock in February 2021.
Amazon founder Bezos sold 50 million shares worth $US8.5 billion in the ecommerce group in February. Andy Jassy, Amazon’s chief executive, sold $US21.1 million of stock this year, compared to $US23.6 million in 2023 and 2022 combined.
Mr Zuckerberg, Meta’s chief executive, has sold millions of dollars of the company’s shares for years. But he has increased selling this year as its stock hit all-time highs. In early February, he sold 291,000 shares for $US135 million, his first sale of that size since November 2021. He still has 13.5 per cent of the company’s outstanding shares, which makes him its largest shareholder.
“We do view [corporate insider share sales] as a negative data point that investors should be aware of,” said Ben Silverman, Verity’s vice-president of research.
He added that within the technology sector specifically, “we are also seeing a number of the big [company] names in this space with insider selling that is not typical”.
“Clearly there’s an appetite for liquidity generation right now,” Mr Silverman said. “Some of that is some pent-up demand following relatively quiet insider selling in 2022 and 2023, and certainly one impetus is [stock] market performance.”
In one notable case, Snowflake’s Frank Slootman sold $US69.2 million in early February, weeks before he announced he would step down as CEO. The database software company’s shares are down about 29 per cent since the day he announced his retirement. Mr Slootman was not a founder of Snowflake but was brought in 2019 to take it public.
“Insider sales by high-level execs of large amounts of stock are never a good sign, it’s quite simple,” said Mr Elson from the University of Delaware. “It means they have found a better place to deploy their assets than the businesses they’re running.”
Amazon declined to comment. Meta, Palantir and Snowflake did not respond to requests for comment.
Financial Times
