The co-founder of Uber Technologies Inc (NYSE:UBER) Travis Kalanick has reportedly been selling out a significant number of his stakes. It was sometime back that he was ousted from serving the business in the position of CEO. It triggers a lot of emotion among investors who have been interpreting his actions differently.
A close outlook
In the lockup period last year, the official is said to have sold out shares worth about $2.5 billion. This significant move left him with only about 10% of holdings in the company.
His systematic pattern in the sale of shares is becoming quite notable, with many people saying it is a sign of his exit from the business. It was in the previous week that Kalanick dumped shares worth $383 million leaving him with shares of about $250 million.
His actions seem to be impacting the company negatively. Analysts deem them to be major headwinds for the company, which has been retrogressing for quite a while. Investors seem to be quite alert and have been punishing poor performing companies with their whip. The loss-making companies are being abandoned and, in turn, shareholders moving out to find better-performing businesses.
Interpretations to his move
Reports indicate that Uber hardly trades at an IPO price above $45.The latest reports indicate the business trading at a level that is lower than $31 a per share, which is unfortunate.
The wide-ranging interpretations of Kalanick’s moves call out for the company to move with speed to fix matters. There is a group that thinks the official’s move has to do with his lack of confidence in the company’s management. This could work badly for the company if the remaining investors reach the same conclusion.
This is not the only official making such a move. There are reports that other executives are walking the same path. The other leader is Garrett Camp, who happens to be a co-founder of the company as well. However, he hasn’t sold out his shares on a significant scale, as Kalanick did.
There is a group that says that Kalanick’s moves might have something to do with the company ousting him from the CEO position. The real answers are not out. Kalanick may have decided to direct all his energy on CloudKitchens, which happens to be his most recent venture.