DoorDash CEO and other co-founders to sell millions of shares, stock falls
By Levi Sumagaysay
Three top executives expect to sell at least 2 million shares apiece as options approach expiration date, company discloses
DoorDash Inc.'s three co-founders will sell millions of shares in the company beginning next month, the company disclosed Monday.
DoorDash (DASH) Chief Executive Tony Xu, Chief Technology Officer Andy Fang and Chief Product Officer Stanley Tang have unexercised stock options that expire on June 25, 2024, so they will sell up to 6.6 million shares among them.
The executives adopted trading plans in compliance with federal rules designed to avoid accusations of insider trading; because rules limit the number of shares that they can sell in any three-month period, the three executives will spread out their stock sales from February 2023 to June 2024.
Xu intends to sell up to 2.2 million shares of Class A common stock, while Fang and Tang intend to sell up to 2 million and 2.4 million shares each, respectively.
The company's announcement also noted that because the planned sales are related to options exercises, "we do not expect these dispositions to reduce Mr. Xu, Mr. Fang, and Mr. Tang's common stock holdings or voting power compared to current levels."
A DoorDash spokesman had no additional comment.
DoorDash shares closed 3.5% lower at $56.56 Monday, and fell more than 2% in after-hours trading. They have declined about 50% in the past 52 weeks but are up nearly 16% so far in 2023.
DoorDash's market capitalization is $22.76 billion. The company has 360.08 million shares outstanding and a public float of 262.41 million shares. The app-based delivery company is scheduled to report fourth-quarter earnings Feb. 16.
-Levi Sumagaysay
(END) Dow Jones Newswires
January 31, 2023 08:09 ET (13:09 GMT)
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