On Monday, Twitter’s CEO and two of the company’s cofounders announced that they had no immediate plans to sell their shares, making the network’s stock jump more than 3%.
In a filing that Twitter sent to the Securities and Exchange Commission (SEC), Dick Costolo, Twitter CEO, as well as Evan Williams and Jack Dorsey, both cofounders, said they “have no current plans to sell any of their shares of Twitter common stock.”
The announcement is quite important and gives investors a good signal. The timing is particularly important since the stock lockup period ends, which would normally make an additional 480 million shares of Twitter stock to end up on the market.
Twitter went public last November and has had a particularly successful IPO, despite fears that it would follow into the footsteps of Facebook and its disastrous public listing.
The company’s shares nearly doubled in price soon after they became publicly available, and, much to everyone’s relief, they managed to maintain said levels through the past months.
In the past few days, Twitter stock has faced a few issues due to concerns about the lockup expiration period. Now that the execs explained their plans, the investors seem to be back on track and buying Twitter shares again.