Shares of ride-hailing platform Lyft (NASDAQ:LYFT) are in the spotlight following a $3.44 million sale from co-founder and director John Zimmer. On Dec. 14, Zimmer converted 36,000 Class B shares into Class A shares of LYFT stock on a 1-to-1 basis. Following the conversion, Zimmer sold off the shares at an average per share price of $15.04.
On the same day, Zimmer also sold off an additional 193,200 shares at the same average price. Both of these sales were made via a prearranged 10b5-1 plan that was enacted on May 31 of this year.
Following the sale, Zimmer still owns 1.21 million Class A shares and 3.12 million Class B shares.
Co-Founder John Zimmer Sells $3.44 Million of LYFT Stock
Based on Zimmer’s remaining stake of over 4 million shares in total, its safe to say that he isn’t anywhere near close to giving up on LYFT stock. Insider sales do not provide as clear as a message as insider buys because they can be enacted for a variety of purposes, such as for personal expenses or diversification reasons. Meanwhile, insider buys clearly signal that the insider is bullish on the stock.
At the same time, Zimmer has slowly offloaded his stake in Lyft since its initial public offering (IPO) and has not purchased a single share on the open market. Since 2019, he has sold $5.81 million worth of shares. Further, roughly $4.10 million of those sales have come during the past year. Zimmer stepped down from his role of President earlier this year. Co-founder Logan Green also stepped down from his role as CEO.
Meanwhile, President Kristin Sverchek also reported an insider sale that occurred on Dec. 14. Sverchek sold off 5,669 shares worth about $85,000 at an average per share price of $15. The sale was executed via a 10b5-1 trading plan adopted on Aug. 31. Since Lyft’s IPO, Svercheck has purchased $0 of shares while selling $12.81 million of shares.
During the past year, Lyft insiders have purchased $2.24 million of shares while selling $5.60 million of shares. That adds up to net sales of $3.36 million.
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.
