Why is Eric Schmidt Dumping Nearly Half of His Google Stake?

  Google+  Twitter | + More Articles
  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

Former Google (NASDAQ:GOOG) CEO Eric Schmidt is about to sell a sizable share of his company holdings, according to a recent regulatory filing, and investors are taking it as an ill-omen, bidding down shares in pre-market trading.

Now Google’s executive chairman, Schmidt filed an 8-K with the SEC on Friday. He will sell up to 3.2 million shares, roughly 42 percent of his 7.6 million-share stake. At Google’s Friday closing price of $785.37, the shares Schmidt hopes to sell are worth roughly $2.5 billion.

Markets are off to the races and this stock is on fire. Click here to discover it now!

Google’s SEC filing says Schmidt’s sale is part of a long-term effort to diversify assets and add liquidity, but anytime someone dumps that many shares, especially in a company currently trading near record highs, there’s going to be some pullback.

To reduce his impact on the market, Schmidt will spread his stock trades over the course of the next year.

Shares fell 0.94 percent to $777.99 in pre-market trading.

Don’t Miss: Is Activision Likely to Outperform?

More Articles About:

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business