Editor’s note: This article was updated on Jan. 26 to correct the nature of Phillip McFillin’s insider transaction.
What’s going on with Vinco Ventures (NASDAQ:BBIG) today? As a refresher, the company changed its name to ZASH last October, although this name change has not been reflected on financial platforms yet. Shares of BBIG stock are in the green today and up by more than 15% the past month.
ZASH seems to be capitalizing on several major trends. The company opened its non-fungible token (NFT) marketplace last fall, providing users with a “unique tokenization platform.” Before that, ZASH purchased a majority stake in Lomotif. Lomotif will seek to compete with TikTok in the short clips market. However, ZASH’s latest venture is what has investors most excited.
What Will Cryptyde Mean for BBIG Stock?
ZASH announced last year that it would be releasing Cryptyde. Cryptyde will be a crypto-centric spinoff of ZASH that will focus on disruptive blockchain innovations through “selective acquisitions.” In addition, Cryptyde will eventually trade as a standalone entity on the Nasdaq under the ticker TYDE.
Even better, existing shareholders of BBIG stock will receive one share of TYDE stock for every 10 shares of BBIG stock that they own. This is because shares of TYDE will be issued in a dividend spinoff for owners of BBIG stock. Anyone who holds shares of BBIG stock before a designated record date will be eligible for the dividend, although the date has not been disclosed yet.
So what is the latest Vinco Ventures news? In a Form 4 received yesterday, ZASH director Phillip McFillin sold 100,000 shares of BBIG stock on Jan. 18 for $5 per share. The sale was part of a prearranged 10b5-1 plan that was enacted last December. After the transaction, McFillin now owns a total of 329,756 shares. Shares of BBIG stock are currently trading more than 30% below McFillin’s transaction price.
With Cryptyde launching soon this year, what institutional investors appear more bullish on BBIG?
Vinco Ventures Largest Institutional Owners
According to WhaleWisdom, these are the largest institutional owners of BBIG stock:
- Hudson Bay Capital Management, 6.43% ownership
- Vanguard Group, 1.83% ownership
- BHP Capital, 1.25% ownership
- Mercury Funding Co., 0.83% ownership
- Jane Street Group, 0.7% ownership
Out of the five largest owners, all of them increased their positions last year. This certainly bodes well for ZASH, as institutional owners provide liquidity and support for stocks. It also suggests that these institutions see further upside for ZASH.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.