Mullen Automotive (NASDAQ:MULN) stock is in the spotlight after CEO David Michery reported selling shares. The CEO has now sold shares on six separate occasions this year.
MULN stock tumbled last Friday after the company failed to reveal the details of a new Fortune 500 customer. Michery had stated in an interview that Mullen would disclose the customer during the second quarter, or by June 30. He added that the customer was participating in a cargo van pilot program and was “pleased” with the results of the trial.
Now, paired with silence on the company concerning a new customer, Michery has sold 350,000 shares of his company. Let’s get into the details.
CEO David Michery Sells More MULN Stock
On June 29, Michery sold 350,000 shares of MULN worth $391,965. The shares were sold at an average price of $1.11 per share. After the sale, Michery still owns 6.96 million shares. In addition to the sale, Michery also gifted 441,097 shares to an unknown recipient or recipients on June 30. The details of the recipient(s) were not disclosed on the Form 4 filing.
Michery has not purchased a single share of MULN on the open market this year, as all of his submitted Form 4s are sales. Even more, not a single insider of Mullen has purchased shares on the open market this year.
Year-to-date, Michery has now sold a total of 1.78 million shares. Excluding the June 29 sale, his most recent sale occurred on June 15. On that day, the CEO sold 150,000 shares at an average price of $1.10 per share.
Insiders are not required to disclose the reasoning behind their transactions. However, the constant sales by Michery certainly do not provide positive signals for retail investors. Besides Michery, two other insiders have sold shares this year. They are Director Kent Puckett and Director Jonathan New.
Mullen Lowers Debt By $17.5 Million
In other news, it was announced this morning that Mullen had eliminated $17.5 million of company debt. At the end of 2021, the company had overall debt of more than $30 million. That figure has now been reduced to around $11 million. The company now claims to be in its “best financial health” since inception.
We continue to make great progress on our overall company financial health. This recent elimination of debt makes us financially stronger now, allowing the Company to maintain its focus on its various EV initiatives.
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.