LinkedIn Corp (NYSE:LNKD) shares are falling this afternoon as rumors swirl that an activist hedge fund has sold the stock.
LinkedIn shares fall 2% as Einhorn takes short position
Quoting Einhorn’s letter to investors from last month, the report notes the hedge fund manager said “there are a number of tech stocks caught up in a smaller version of the 1999-2000 Internet bubble and we’ve created a bubble basket to short them.” Einhorn did not disclose what tech stocks to which he was referring, but speculation is that LinkedIn Corp (NYSE:LNKD) is one such stock.
As of July 31, the report noted, short interest in LinkedIn was steady at 5.4 million shares, unchanged from the previous month. LinkedIn’s total stock float is 218.7 million. Market watchers will be trained on August short volume to note if LinkedIn received significant short selling signals.
LinkedIn’s Director unloads 1,561 shares
News of the LinkedIn sell off comes as company Director Stanley J. Meresman unloaded 1,561 shares of LinkedIn Corp stock on Thursday, August 14th. The stock was sold at an average price of $217.30, for a total value of $339,205.30 and was disclosed in SEC documents.
A number of research teams have recently covered LinkedIn Corp (NYSE:LNKD). Stifel Nicolaus initiated a buy rating with a $250 price target, near all time highs. This came as Piper Jaffray raised their price target from $270 to $282 per share earlier this month. The stock has a consensus buy rating of $234.50.
While the fundamental guys love the stock, the algo traders might be thinking something else.
Considering the algorithmic signals, the stock has been overextended on its recent move higher near $216 and could be due for a technical correction. Some forward looking algorithmic sell signals have indicated a move lower, while many momentum-based indicators appear tired but do not look as though they have fired algorithmic sell signals yet.
On a longer term basis, LinkedIn is approaching overhead resistance at a congestion area just below from $216 to near $220.