Uber's former chief executive Travis Kalanick has dumped 90% of his stock since the ride-hailing app's initial public offering in May. Most of the unloading came in the last two months, where Kalanick dumped $2.5 billion worth. The Financial Times says the "scale and pace of his share sales" has suggested that Kalanick is on track to liquidate his entire position in the coming weeks.
Kalanick has used the proceeds to fund a new project called CloudKitchens, a real estate development firm that leases space to restaurants serving food delivery apps. SEC filings show Kalanick sold $383m worth of Uber stock this week. His remaining position is now worth $250 million, expected to be dumped by as early as next week.
Since peaking in June, Uber shares have lost nearly 43% of its value, likely following Kalanick's lead as confidence in the company to make money is dim.
"When insiders, current and past, sell, they normally signal bad news," said Meziane Lasfer, professor of finance at City University's Cass Business School. "The market is likely to follow him."
Kalanick's selling spree has occurred under the Rule 10b5-1 plan, which is a pre-determined selling plan so executives can dump their shares without suggesting controversy or ahead of bad news.