Sign in Subscribe
Cable television broadcasting industry

Twitter Shares Fall as CEO Dick Costolo Sells $5 Million Worth of Stock

Strategic Insights

— 1 min read

Twitter CEO Dick Costolo has sold more than $5 million worth of the company's stock, according to an SEC filing. The company's shares fell 2.1% to $37.94 following the disclosure. Costolo's sale comes after his family trusts liquidated their remaining shares of Twitter for about $20 million in December. This news follows a suggestion by former Yahoo! CEO Ross Levinsohn that Twitter should acquire the Internet company.

Key Takeaways:

  • Twitter CEO Dick Costolo sold 140,352 shares of Twitter stock on January 2 and January 5, worth over $5 million.
  • Costolo still owns more than 800,000 shares of Twitter stock, as reported in the SEC filing.
  • Two of Costolo's family trusts liquidated their remaining shares of Twitter for about $20 million in December, according to CNBC.
  • Former Yahoo! CEO Ross Levinsohn suggested that Twitter should acquire the Internet company in a recent article.
  • TheStreet Ratings Team has given Twitter a Sell rating with a D score, citing multiple weaknesses, including a 171.6% decrease in net income compared to the same quarter last year.
  • The company experienced a 43.65% decline in its stock price over the last year, worse than the S&P 500's performance.
  • Twitter's return on equity significantly trails that of the industry average and the S&P 500.

Statistics:

  • 140,352: The number of shares sold by Costolo on January 2 and 5.
  • $5 million: The value of the shares sold by Costolo.
  • 800,000+: The number of shares still owned by Costolo, as reported in the SEC filing.
  • 171.6%: The percentage decrease in net income compared to the same quarter last year.
  • 43.65%: The decline in the company's stock price over the last year.
  • 0.43: The company's debt-to-equity ratio, higher than the industry average.
  • 8.98: The company's quick ratio, demonstrating strong liquidity.
  • $20 million: The amount made by Costolo's family trusts from liquidating their remaining shares of Twitter in December.

Sources:

  • TheStreet: "Twitter (TWTR) Shares Fall After CEO Dick Costolo Discloses $5 Million Stock Sale"
  • SEC filing: "Twitter, Inc. Form 4"
  • CNBC: "Twitter CEO's Family Trusts Sell Remaining Stake for $20 Million"
  • TheStreet: "Stocks To Buy: TheStreet Quant Ratings' Best Stocks for 2015"
  • TheStreet: "TWTR Ratings Report"

Read more