Were LinkedIn investors NOT expecting a secondary share offering?
Despite third quarter results that blew away expectations, not to mention fourth quarter guidance that is also above what analysts had built into their models, LinkedIn stock is trading down 8% after hours. The reason appears to be that the company filed a new prospectus, making it official that, yes, insiders will be selling shares after the 6-month lock-up period expires November 21.
The filing discloses little information that shareholders really care about, such as how many shares will be sold or who will be selling them. Expect that information in an updated filing later.
But with the stock still trading somewhere north of 70 times next year’s earnings before interest, taxes, depreciation and amortization, it’s no wonder some insiders want to lock in gains.
–Rolfe Winkler
No comments:
Post a Comment