- Wednesday, October 16, 2024
Jeff Bezos, the executive chair and founder of Amazon.com, hasn't sold any shares of the company for over two years. However, according to the company's recent filing with the Securities and Exchange Commission (SEC), Bezos has created a trading plan to sell a significant amount of Amazon.com stock.
The filing states that on November 8, 2023, Bezos "adopted a trading plan intended to satisfy Rule 10b5-1(c) to sell up to 50,000,000 shares of Amazon.com, Inc. common stock over a period ending on January 31, 2025." Based on the current valuation, these 50 million shares are worth around $8.6 billion.
These trading plans, known as Rule 10b5-1 plans, are commonly used by insiders to buy or sell shares without raising suspicions of insider trading. Insiders set specific parameters for the transactions, such as price and volume, and the trades are automatically executed when the predetermined conditions are met.
Since adopting this plan, Bezos has not made any sales yet. His last sale of Amazon stock took place in November 2021.
Following blowout earnings reported by Amazon on Thursday night, the company's shares surged by 7.5% during Friday trading, closing at $171.22. This impressive performance positioned Amazon as one of the top three gainers in the S&P 500.
It remains to be seen if this surge in share value will trigger any sales from Bezos or other insiders. Typically, insiders have two business days to report their transactions.
Inside Scoop is a regular feature that covers stock transactions made by corporate executives, board members, prominent figures, politicians, and large shareholders. These individuals are required to disclose their stock trades with regulatory groups such as the SEC.
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