Former CEO Piotr Szulczewski Is Selling Off ContextLogic (WISH) Stock

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  • Former CEO Piotr Szulczewski recently sold 3.6 million shares of ContextLogic (WISH).
  • Szulczewski has sold shares on eight separate occasions this month.
  • Shares of WISH stock are down over 60% year to date.
WISH stock - Former CEO Piotr Szulczewski Is Selling Off ContextLogic (WISH) Stock

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ContextLogic (NASDAQ:WISH) stock is in focus following several insider sales by 10% owner and former CEO Piotr Szulczewski. After taking a look at the e-commerce platform’s second-quarter earnings, the sales don’t come as too much of a shock. ContextLogic reported its earnings on Aug. 9, while Szulczewski’s sales began on Aug. 12. The company announced revenue of $134 million, down a staggering 80% year over year (YOY). Core marketplace revenue was down 86% YOY, while product boost revenue was down 78%.

The company remains unprofitable, although profitability improved from a year ago. Its net loss totaled $90 million, 19% narrower YOY. On top of that, free cash flow tallied in at negative $67 million, up from negative $205 million a year ago.

CEO Vijay Talwar added:

While we are not immune to changes in consumer spending habits driven by macroeconomic factors, which could impede our accelerated growth plans for the second half of 2022, we are confident in moving forward with our exciting new initiatives…

WISH Stock: Former CEO Piotr Szulczewski Sells Shares

Between Aug. 24 and Aug. 25, Szulczewski sold 3.6 million shares at average prices between $1.33 and $1.36. After the sale, he still owns 48 million shares. Before that, the former CEO reported selling 2.13 million shares at average prices between $1.47 and $1.62 from Aug. 17 to Aug. 19. In the month of August, Szulczewski has sold WISH on eight separate occasions. At the beginning of the month, he owned 57.13 million shares.

Szulczewski isn’t the only insider to have sold shares of WISH this month. On Aug. 16, director Hans Tung sold 1.89 million shares at an average price of $1.67. The shares were sold through GGV Capital, of which Tung is a Managing Partner.

In the past three months, WISH insiders have acquired 57.35 million shares while selling 16.03 million shares. That adds up to a total net activity of 41.62 million shares acquired. However, investors should keep in mind that acquired shares includes shares awarded as part of an employee compensation plan.

During the second quarter, 178 funds reported owning WISH, an increase of 12 funds from the prior quarter. Meanwhile, the institutional put/call ratio sits at 0.31. This means that funds own more call options against the company than put options by a large margin. As of Q2, ContextLogic’s largest shareholders are Szulczewski, Formation8 Partners Fund and Vanguard.

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.


Article printed from InvestorPlace Media, https://investorplace.com/2022/09/former-ceo-piotr-szulczewski-is-selling-off-contextlogic-wish-stock/.

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