Update (Nov. 14): Earlier this week, we reported that Wall Street insiders are dumping stock at a record pace as the bull market in equities could be nearing an end.
We also said Travis Kalanick, Uber's ousted co-founder, sold 20.3 million shares worth $547 million last week. Now a new filing shows Kalanick continues to dump stock this week.
The filing shows Kalanick dumped another $164 million of his Uber holdings, bringing the total amount sold since the 180-day lockup expiration on Nov. 6 to $711 million.
Kalanick still serves on Uber's board and continues to maintain a 4.2% stake worth $1.9 billion. He'll likely continue dumping shares as the company loses billions of dollars and records the slowest-ever revenue growth.
Investors fear that the money-losing technology company could face severe financial headwinds ahead of the next recession, which is why Kalanick isn't sticking around and dumping his shares as fast as possible.
In the last 20 weeks, shares have plunged 42% as investors see no turnaround in the ride-hailing company.
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As we detailed previously, Travis Kalanick, Uber’s ousted co-founder, has followed down the path of every other Wall Street insider this year: dump stock amid concerns the longest bull market in equities could be nearing an end.
Insiders are dumping stock at the fastest pace in two decades. Bloomberg reports Kalanick sold 20.3 million shares worth $547 million last week, according to a Friday filing.
Uber's 180-day lockup period restricting insiders and pre-IPO investors from selling expired last Wednesday.
Uber shares in the last five months have plunged 43% to the 26-handle.
Shares have dropped 22% over the previous seven days ahead of the expiration, which underlines how investors steer cleared of the stock ahead of insider dumping.
Kalanick still serves on Uber's board; he owns 78 million shares, or about a 4.6% stake, worth $3.5 billion.
Kalanick disposed of stock through a Rule 10b5-1 plan, which allows him to sell a certain amount of shares within a pre-determined timeframe to avoid controversy.
Across all of Wall Street, insiders dumped $19 billion of stock in their companies through mid-September. Annualized, this puts insiders on track to hit $26 billion for the year, would be the highest dollar amount on insiders dumping since right before the Dot Com bust in 2000.
Kalanick is dumping stock like every other insider on Wall Street. What do they know?