Twitter COO Rowghani Sells Part of Stake as Lockup Expires
Twitter Inc. (TWTR) Chief Operating Officer Ali Rowghani is among executives who sold shares when a lockup on insider sales was lifted, cashing out on part of his stake even with the stock near its all-time low.
Rowghani, who was among early shareholders banned from selling for a period after Twitter’s initial public offering, sold 300,000 shares of his stake for a profit of about $9.9 million, according to a filing with the U.S. Securities and Exchange Commission. Vijaya Gadde, the corporate counsel, and Luca Baratta, a vice president of finance, also sold part of their stakes.
Their decision comes in contrast to other insiders, including Chief Executive Officer Dick Costolo and co-founders Evan Williams and Jack Dorsey, who pledged to hold on to their shares to signal a vote of confidence in the company. Twitter has reported two quarters of decelerating user growth since its IPO, raising questions about whether the company has enough momentum to justify its stock price.
The executives are selling as Twitter hovers near an all-time low after losing half its value so far this year. Shares ross less than 1 percent to $32.05 at the close in New York. They debuted at $26 on Nov. 6.
Separately, Doug Bowman, the company’s creative director, said today that he is leaving Twitter after five years there.
Jim Prosser, a Twitter spokesman, didn’t respond to an e-mail seeking comment.