- Snap CEO Evan Spiegel sold $50 million of Snap stock on Monday.
- The SEC filing for the the transaction carried a note that Spiegel followed a trading plan designed to allow sellers to avoid accusations of insider trading.
- Snap had a comeback in 2019 following a harrowing 2018.
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An SEC filing has revealed that Snap CEO Evan Spiegel just dumped $50 million worth of company stock.
Filed on Monday, the SEC filing shows Spiegel sold 2,780,670 shares at a price of roughly $18 each. The filing carried the note that the transaction followed a “Rule 10b5-1 trading plan,” an SEC rule which allows sellers of shares to avoid accusations of insider trading.
Spiegel owns 5.8% of Snap, making him its third-biggest shareholder, and Forbes puts his current net worth at $3.9 billion.
This isn’t the first time Spiegel has sold off a similar chunk of shares, in February 2018 he sold $50 million, marking his first sale since the company’s IPO. And at the end of 2019, he sold around $22 million in shares, filings show. At a Goldman Sachs investor conference in 2019, Spiegel also advised young founders against taking their companies public.
Snap had a comeback in 2019 following a disastrous 2018, when a much-maligned redesign cost sent Snap’s stock spiralling by 7%. The company’s Q2 2019 results showed user growth had bounced back since the redesign, beating Wall Street’s expectations and sending shares up by 12%. The company’s future is still uncertain however, and research from eMarketer stated that last year it was overtaken in by Pinterest as the third-biggest social media network in the US.