Jeffrey P. Bezos, the chief executive of Amazon (NASDAQ:AMZN) one of the largest Internet retailing and cloud computing services providers in the world has sold more than 16.35 millions of Amazon shares that worth $3.37 billion in November alone.
He made four transactions during the month: 1,068,452 shares at $200.07 on 1st of November; 5,992,724 shares at $205.48 on November 7, the same number again at $207.8 per share on November 11 and 3,300,720 shares at $207.99 on 13th of November. Every time the sales take place, the price oscillated slightly, increasing by 1.3% on November 1st, and then dipping by 1,4 % in the second transaction, sliding by 2,5% on the third sale and finally a 2,59% drop on November 13th.
After stepping down as the CEO of Amazon in 2021, Bezos remains as the executive chairman. Now he has seen to be more involved in more projects outside Amazon’s operation. Amazon has not commented on the stock sales but its investors are closely watching Bezos including his recent decision to move toFlorida to avoid Washington’s 7% capital gains tax and involved more in projects such as space exploration. He also actively manages his own investment portfolio through Bezos Expeditions, the investment firm he founded.
The combo of smaller stake on Amazon and being more active in his own investment is seen by the investors that Bezos might feel tied up too much in Amazon and hoping to diversify his holdings and risk. Reports from Barron’s revealed that Bezos planned to tank more of his Amazon shares up to 25 million sharesby the end of 2025.
Until this article is written, Bezos still has 911.11 million Amazon shares equal to around 9% of the Amazon’s total outstanding of 10.447 billion of shares. The sales are part of a prearranged trading plan under theSEC’s 10b5-1 rule, which allows corporate insiders to sell a predetermined number of shares at set times to avoid accusations of insider trading.
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This article first appeared on GuruFocus.
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