Uber Founder Travis Kalanick Sold $350 Million of His Stock Holding This Month; the Count is now Over $2.1 Billion

This is non investment advice. The writer has no position in any of the stocks mentioned. WCCF TECH INC has a disclosure and ethics policy.

Ever since the expiration of Uber'south (NYSE:UBER) post-IPO lockup period on 6th of November, the company's founder Travis Kalanick has been on a tear.

As per the filing with the SEC, Mr. Kalanick unloaded a proportion of his Uber's stake worth $350 one thousand thousand this month. These shares were sold in multiple transactions at prices ranging from $27.87 to $28.54. Equally a refresher, since the expiration of Uber's lockup period, Mr. Kalanick has cumulatively sold Uber's shares worth $2.ane billion.

It is important to note that the insider sale of shares is inappreciably unusual given that nigh executives receive the bulk of their compensations in the form of equity and, consequently, engage in periodic liquidations. However, an abnormal pace of liquidation may raise a carmine flag vis-à-vis the direction's level of conviction in the business.

According to the Bloomberg Billionaire'due south Index, the proportion of Mr. Kalanick'south $three billion net worth that is tied to his stake in Uber has gone down from around 75 percent during the pre-IPO phase to effectually 20 percent now. Interestingly, the 43-year-old founder has already offloaded the entirety of Uber'south stock that he indirectly owned. Now, it seems that he has set his sights on significantly alternative his directly owned stake in the company.

Of class, the insider transactions of Uber's other executives are also noteworthy. The company's co-founder Garrett Army camp has as well reduced his stake, admitting, at a reduced pace. To date, he has sold shares worth about $35 million, a fraction of his $2.1 billion property in the visitor. However, it seems that another insider is taking the polar opposite approach. Chief Executive Officeholder Dara Khosrowshahi actually bought additional shares worth about $vii one thousand thousand on November xviii.

This development comes every bit Uber is facing upheaval on multiple fronts. In November, the Ship for London (TfL) stripped Uber of its license for the 2nd time since 2022, thereby, leaving London's 45,000 drivers associated with the ridesharing giant in a limbo. Uber, for its part, has challenged this decision in a court. Still, if the court upholds this termination of license, the company could potentially lose almanac revenue of upwardly to $480 meg.

Additionally, California has now approved a police, whereby, temporary and contract employees are to be granted social protections such as the minimum wage enforcement and unemployment benefits provided that such employees regularly work full-fourth dimension hours and perform duties central to a business organization. For obvious reasons, this police force has profound negative implications for Uber as it volition be forced to provide minimum wage compensation to its drivers which, in plow, will significantly drive upwards costs in an industry surroundings characterized by stagnating growth.

Finally, investors are growing increasingly concerned almost Uber'southward worsening cash burn problem. Equally an illustration, the stock is down 31.46 percent year-to-date while the Southward&P500 has soared over 10 percent during the aforementioned menstruum.

Source: https://wccftech.com/uber-founder-travis-kalanick-sold-350-million-of-his-stock-holding-this-month-the-count-is-now-over-2-1-billion/

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