Facebook Inc (FB) Insiders Rake In $7.2B In Share Sales

Facebook Inc (NASDAQ:FB) Chief Operating Officer Sheryl Sandberg and a handful of other executives have been making headlines by unloading shares of their company’s stock. Insider selling has increased meaningfully this year. Now analysis from Bloomberg indicates that executives at the social network have bought in a total of $7.2 billion by selling a total of 186 million shares of Facebook. Co-founder and CEO Mark Zuckerberg has raked in nearly half of that total.

Facebook Inc (FB) Insiders Rake In $7.2B In Share Sales

11 Facebook holders unload over $100 million in stock

Bloomberg analysis shows that Facebook Inc (NASDAQ:FB) executive Mark Zuckerberg has earned the most from selling shares of the company he co-founded. This past weekend marked exactly two years since the social network’s IPO. Of the insiders who sold shares, 11 of them sold over $100 million. Zuckerberg himself raked in $3.4 billion from sales of his shares.

In second place but trailing far behind Zuckerberg was Goldman Sachs Group Inc (NYSE:GS). The firm was Facebook Inc (NASDAQ:FB)’s underwriter in its IPO, and it has earned $914 million since then by selling shares. Director and early investor Peter Thiel brought in $861 million from selling his Facebook stock.

Facebook insiders take advantage of rising share price

Facebook Inc (NASDAQ:FB) stock was priced at $38 per share on May 17, 2012 and then began trading on the NASDAQ the following day. The stock dropped like a rock quickly, declining below its IPO price. Investors began to question whether the social networking business was sustainable. Then last year Facebook shares recovered in a big way as the company proved that its business model is sustainable, particularly as advertising shifts over to mobile devices.

More recently, however, Facebook Inc (NASDAQ:FB) stock has been pressured. Shares have declined 19% since hitting their all-time high back in March.

Facebook execs’ behavior “typical”

COO Sheryl Sandberg has been joined by Chief Financial Officer David Ebersman and a few other insiders in continuing to sell off their Facebook Inc (NASDAQ:FB) stock recently. Researcher Aaron Boyd told Bloomberg that this type of behavior is very typical of companies that go public. However, he also said that the social network’s size and also “the scale to which these shares are valued is atypical.”

In spite of the recent rise in insider selling, Facebook Inc (NASDAQ:FB) insiders still own most of their shares. Zuckerberg cashed out $3.41 billion, although most of that was to cover his tax obligations.

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About the Author

Michelle Jones
Michelle Jones was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Michelle has been with ValueWalk since 2012 and is now our editor-in-chief. Email her at Mjones@valuewalk.com.

2 Comments on "Facebook Inc (FB) Insiders Rake In $7.2B In Share Sales"

  1. galacticcannibal | May 19, 2014, 9:35 pm at 9:35 pm |

    Exactly what does Facebook make . Nothing not even a mouse trap. Just a source of vast wealth for a few owners and investors. America was not built on Facebooks . It was built on nuts and bolts on bricks and motor on real sweat and physical hard work . On building roads and railways and planes . On driving great manufacturing plants . Facebook is none of those. Facebook is a short term fad , a flash in the pan.

  2. FB – hype master with nothing worth its current value. the real benefits are for insiders. now new hype / rumor on china and snap chat. i believe FB will waste another 20 billion next year after loosing fight with snap chat and spreading nothing but rumors.

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