Since it went public, Groupon (NASDAQ:GRPN) has taken a lot of heat for insider selling. The company’s founders took $870 million off the table by the time public investors could buy shares and it’s easy to see now that they were probably cashing in while the company was at its most valuable.
But insider sales haven’t stopped as the flood of Groupon insiders continues to sell shares. Earlier this week, co-founder Bradley Keywell sold another 500,000 shares for a total proceed of $2.7 million and Chief Accounting Officer Brian Stevens sold 47,497 shares, 17% of his stake, for $51,075.
In the last six months, 4.9 million net shares have been sold by Groupon insiders, a huge number for a company that should still be in growth mode.
Another warning sign for the deals company
Groupon reported $49.6 million in losses over the past year and the stock is nearly at a 52-week low of $5.26 per share. Even at that price, insiders don’t see a lot of value in the company and investors should take that as a warning sign. Groupon hasn’t been a great deal since it hit the public market and insider selling has foreshadowed the losses investors have experienced since the company’s IPO.
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