Overstock Falls to Support as Former CEO Cashes Out 4.7M Shares
JUSTIN KUEPPER, 19 September 2019
Overstock.com, Inc. (OSTK) shares fell to key support levels after former CEO Patrick Byrne disclosed the sale of 4.7 million shares in a Form 4 SEC filing earlier this week. While large insider sales are typically a bearish signal, Byrne noted in a letter that the sale was due to insurance, controversy, and hedging rather than a lack of confidence in the company.
DA Davidson analyst Tom Forte believes that Byrne’s decision to cash out his 4.7 million shares represents a positive development for the stock since it minimizes his ability to influence the stock and decreases the likelihood of a sale of its retail business. The analyst expects CEO Jonathan Johnson to unlock “meaningful value” from the legacy home e-commerce business and build out the blockchain technology portfolio. Forte maintains a Buy rating and a price target of $48 per share on the stock, representing a significant 196% premium to the current market price.
