CEO David Michery Just Sold MULN Stock. Here’s Why.

Mullen Automotive (NASDAQ:MULN) stock has been the talk of the town in recent weeks.

White chalk on pavement shows a plug-in electric vehicle.
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For starters, the electric vehicle (EV) company is up more than 40% today and more than 500% for the past month. Additionally, message volume containing the MULN ticker is up over 300% this month on Stocktwits. ApeWisdom also reports that Mullen is currently the 12th most talked about stock on Reddit’s r/WallStreetBets.

Now, with all the buzz surrounding Mullen, CEO David Michery is taking advantage of the price gain and selling some shares. Here’s what investors should know about Mullen Automotive moving forward.

MULN Stock: CEO David Michery Sells Shares

According to a Form 4 filing received by the U.S. Securities and Exchange Commission (SEC), Michery sold 200,000 shares of MULN stock on March 16. The shares were sold at prices ranging between $1.65 and $1.66. However, the shares sold only represented about 2.3% of Michery’s entire stake. After the sale, the CEO still owns nearly 8.2 million shares.

Right now, MULN stock is up more than 100% from Michery’s sale price. So, why exactly did the CEO make this sale?

Figuring out why an insider sold is a difficult process. This is because insiders sell shares for various reasons, whether it be for personal expenses, taxes or a loss of faith in the company. Based on an interview last month, though, it certainly doesn’t seem like Michery has lost faith in Mullen. During the interview, Michery discussed the “bright future” of the company and its upcoming FIVE EV Crossover.

With the recent sale in mind, however, investors are wondering what other insiders are doing. Over the past 12 months, insiders have purchased 1.7 million shares and sold 799,568 shares. That adds up to a net activity of 924,786 shares purchased. Based on this, it can be implied that insiders are bullish on MULN stock.

Who Else Is Betting Big on Mullen Automotive?

In addition to insider ownership, it’s important to track institutional ownership of a stock because these large institutions can provide liquidity and price support. During the fourth quarter, 18 new funds purchased MULN stock, bringing the total number of funds who own the company and file quarterly 13F forms to 39. Additionally, six funds increased their positions while six others sold out completely.

That in mind, here are the top five institutional shareholders (based on common stock outstanding) of Mullen as of Q4.

  1. Cetera Advisor Networks: 219,700 shares or 0.93% ownership.
  2. BlackRock (NYSE:BLK): 195,101 shares or 0.83% ownership.
  3. Vanguard Group: 188,001 shares or 0.80% ownership.
  4. Susquehanna International Group: 80,562 shares or 0.34% ownership.
  5. Marshall Wace: 69,612 shares or 0.29% ownership.

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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 Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

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