Why are Insiders Selling?

[Blue Lectroid]

After two great back to back days for LCID, yesterday the shares hit a brick wall. At first I thought it was just a bit of profit taking after a 2-day, 20%+ rally. Unfortunately, Lucid announced some share sales that took place on 12/5 at $2.10 by some very important folks…

Eric Bach - 100k shares, 3.6% of holdings

Dhingra Gagan - 55k shares, 8.5% of holdings

Marc Winterhoff - 90k shares, 14.4% of holdings

Peter Rawlings - 476k shares, 2.6% of holdings. Peter also bought an additional 181k shares the next day at $0.83 through exercising options.

This IS, of course a time of year where well-to-do-folks start making trades for tax reasons, but absent any comments from Lucid about why the sales happened, when your CEO, COO, VP Internal Controls and SVP / Chief Engineer all sell on the same day? Well, it obviously made the market nervous.

Should we be? Anyone here know anything more?

BTW, I am a very long term investor and I don’t watch the stock daily, but because of the size of the moves over the past three days LCID stock came across one of my news feeds and so I did a little digging…

 

[Lucken]

Of course there may be, as you say, some very valid tax implications for these moves, but yes, it’s a bit concerning.

 

[Cosmo Cruz]

Senior people are limited to when they can sell stock / exercise options ... perhaps once a year, when nothing is happening, so as not to "signal" , among other reasons.
Plus if they own the stock outright, I bet they have losses they can claim against gains in other areas. I doubt Peter et al made the decision = likely their lawyers and financial guidance made the call. There are lots of restrictions on the senior insiders about when they can sell stock.

The long-term gains of the Index 500, with their low management fee, is the way to insure financial independence in retirement.

dollar cost average your way to financial independence

 

[AirDoll]

 

[Blue Lectroid]

View attachment 25087

Thank you!!! Quick question, who is Nick Twork?

 

[idiot900]

Thank you!!! Quick question, who is Nick Twork?

He is their head of communications: https://lucidmotors.com/company/leadership/nick-twork

And has posted (once, last I looked) here.

 

[Adnillien]

Restricted shares often vest at the same time for all employees receiving them. It is very common for a portion of the shares to be sold to cover taxes and these sales would occur on the same day. Nothing to worry about.

 

[Blue Lectroid]

He is their head of communications: https://lucidmotors.com/company/leadership/nick-twork

And has posted (once, last I looked) here.

Doh! I feel silly now. Thanks!!