Having been in a company that IPO'd and suddenly became subject to Sarbox and many reporting requirements, it is not at all unusual to see simultaneous selling like this. It's not that they don't believe in the company future. They are subject to SEC rules - in particular Rule 105b. It wouldn't surprise me if the order to sell was generated many months ago since timing is set by Rule 10b5-1 and involves preset plans for selling shares at least 90 days ahead of time. There were some rules changes as recently as 2022 in this as well.
Financial advisors will also recommend diversifying your own portfolio. If a large percentage of your financial status is in one stock, they recommend you sell some of that and shift into a variety of financial instruments including other equity and non-equity investments. There are also black-out dates around the times they can and cannot sell - including days after quarterly financial reports. There are also prohibitions on multiple plans. Mostly these have to do with ensuring they are not found to have sold due to material nonpublic information (Insider) information. I bet they spent a lot of time with lawyers and advisors (corporate and personal) to get this right.
So it's not necessarily a bad sign. In fact, they may be planning to spend, invest or donate proceeds which can be good for the local economy. That gets the economy stirring in a good way in addition to having created value in their company.
Having been in a company that IPO'd and suddenly became subject to Sarbox and many reporting requirements, it is not at all unusual to see simultaneous selling like this. It's not that they don't believe in the company future. They are subject to SEC rules - in particular Rule 105b. It wouldn't surprise me if the order to sell was generated many months ago since timing is set by Rule 10b5-1 and involves preset plans for selling shares at least 90 days ahead of time. There were some rules changes as recently as 2022 in this as well.
Financial advisors will also recommend diversifying your own portfolio. If a large percentage of your financial status is in one stock, they recommend you sell some of that and shift into a variety of financial instruments including other equity and non-equity investments. There are also black-out dates around the times they can and cannot sell - including days after quarterly financial reports. There are also prohibitions on multiple plans. Mostly these have to do with ensuring they are not found to have sold due to material nonpublic information (Insider) information. I bet they spent a lot of time with lawyers and advisors (corporate and personal) to get this right.
So it's not necessarily a bad sign. In fact, they may be planning to spend, invest or donate proceeds which can be good for the local economy. That gets the economy stirring in a good way in addition to having created value in their company.
Makes me want to take up another language...
Great perspective, thanks for sharing!!