According to the Wall Street Journal, Google’s former CEO and current Executive Chairman, Eric Schmidt is reportedly selling off stock worth approximately $1.45 billion “as part of a trading plan that would cut his ownership stake in the Internet giant” from 2.8% to 2.1%.
Surely Schmidt’s steeping down from CEO back in April 2011 has had an impact on this decision, as the stock trading plan was only adopted in November. This move may signal a loss of faith in Google, and no matter what, Schmidt is certainly distancing himself from the company with this move.
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According to WSJ:
The plan allows Mr. Schmidt to spread stock trades over a one-year period to reduce market impact.
Google shares had fallen 3.3% in the past year as of the close Friday, and were up slightly over the prior three months.
Google’s stock price has been notably inconsistent over the past few years, fluctuating between ~$500 and upwards of $650 in this past year alone.
It’s interesting that Schmidt waited for social to drop before doing this, but he does still own a sizable chunk at 2.1%. Could he possibly have plans to invest elsewhere? Share you thoughts in the comments below!