Twitter share price: Company’s top executives offload $50 million of shares in November

on Dec 2, 2014
Listen, Tuesday, December 2: Twitter Inc’s (NYSE:TWTR) top executives, including co-founders Evan Williams and Jack Dorsey, and chief executive officer Dick Costolo, sold more than $50 million worth of company shares last month, it has been revealed.

Williams was the biggest seller of the lot, offloading$28.7 million worth of shares, as shown in official filings published by the US Securities and Exchange Commission. Even after the sale he remains Twitter’s largest individual shareholder.
Jack Dorsey, the company’s most famous face, sold a much more modest $2.1 million, while Adam Baim, president of global revenue, pocketed $4 million. The sellers also included Twitter’s head of engineering Alexander Roetter; general counsel Vijaya Gadde; vice president of product Kevin Weill; and chief executive officer Dick Costolo, whose sale was perhaps the most notable of all, as the CEO shed nearly fifty percent of his stock in the company.
The company told Forbes, which reported the story yesterday, that “other than charitable donations, all of the executives’ stock sales were done in accordance with automatic trading plans put on file at least 90 days prior to the sales”.
The statement implies that the sales are not linked to Twitter’s recent stock troubles prompted by the company’s third-quarter report in October. While the results revealed that Q3 revenue more than doubled from a year earlier, they also showed that user engagement with the service was declining. Twitter’s share price fell 17 percent last month.
In light of the company’s performance, Costolo’s stock sale, and particularly the size of it, is a worrying signal, even though it might not be connected to the most recent problems.
In today’s trading, Twitter shares were1.6 percent lower at $38.41,as of 14:56 UTC. The company’s stock has slumped 39.6 percent since the start of the year.
**Analysts on Twitter**
According to the Financial Times, the 34 analysts offering 12 month price targets for Twitter have a median target of $51.99, with a high estimate of $64.00 and a low estimate of $28.00. As of Nov 29, 2014, the consensus forecast amongst 77 polled investment analysts covering Twitter Inc suggests that investors should hold their position in the company. The same consensus has been maintained since the sentiment of investment analysts deteriorated on November 03, 2014, the FT notes.
**As of 15:01 UTC buy Twitter shares at $38.48**
**As of 15:01 UTC sell Twitter shares at $38.46**

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