In November, as Meta’s stock experienced a significant surge, reaching its highest point in almost two years, CEO Mark Zuckerberg was actively divesting himself of shares. According to Form 4 filings with the Securities and Exchange Commission (SEC), Zuckerberg sold Meta shares each day throughout the month, with a total of 560,180 shares sold by November 29. Additionally, a Form 144 filing on a specific Thursday indicated that he intended to sell an additional 28,009 shares on the same day. Based on the weighted average prices of these share sales and the closing figure of $327.15 on that Thursday, the total value of the shares sold amounted to $192.9 million (approximately Rs 1,600 crore).
These shares, indirectly owned by Zuckerberg, were executed for various funds and were part of the Rule 10b5-1 trading plan initiated on July 31, as disclosed in the filings. The surge in Meta’s stock in November reflected a third consecutive month of gains, with a peak closing price of $341.49 on November 22, the highest since December 30, 2021, before a slight pullback.
Most of the shares sold by Zuckerberg were originally acquired in 2004 as part of a “founder stock purchase.” Approximately 150,000 of the sold shares were obtained at $0 on the days they were sold through the exercising of options acquired in 2013. Despite the significant sales, recent filings suggest that Zuckerberg still holds over 365 million shares. As of November 30, he ranked as the ninth wealthiest individual globally, according to the Bloomberg Billionaires Index.
While the sale of over $190 million worth of shares might seem substantial for a single month, it’s important to note that Meta shares have a high daily average trading volume. Over the past 30 days, the daily average trading volume was 19.18 million shares, resulting in more than $6.2 billion worth of Meta shares changing hands on an average day.
The divestment of shares by Zuckerberg was part of a predetermined trading plan, emphasizing compliance with regulatory guidelines. It’s not uncommon for executives to sell shares periodically, especially when the company’s stock experiences notable gains. These transactions, governed by established plans, provide transparency and avoid potential accusations of insider trading.
Zuckerberg’s continued substantial holdings in Meta demonstrate his ongoing commitment to the company. The divestment can be seen as a strategic financial move, enabling liquidity for the CEO while Meta’s stock is performing well. Investors often monitor such transactions as part of their overall assessment of a company’s financial health and the confidence its leadership has in its future prospects.
