Snap employees were able to sell their stock Monday for the first time since the company went public back in early March. Despite fears of a mass sell-off, Snap stock had a solid day (along with the rest of the market).
Snap stock went up more than 6 percent on the day employees were finally able to sell their shares
Snap’s employee lockup period is officially over.
Drew Angerer / Getty
Snap stock jumped more than 6 percent on Monday after a tough second-quarter earnings report last week sent the stock to a new all-time low.
The employee lockup looked like it played a part in Monday’s trading, which was the fourth biggest trading day by volume since Snap went public. Over 84 million shares changed hands. The next biggest trading day followed Snap’s disappointing first earnings report in May, and the two biggest trading days took place right when Snap went public on March 2 and March 3.
Early stock holders and insiders have only recently been able to sell their shares. The first part of a post-IPO lockup expired late last month when early investors and former employees were free to sell; the stock fell just 1 percent that day.
Current employees, who were in a blackout period because of Snap’s looming earnings report, were only able to sell starting Monday once that additional restriction was lifted.
One likely reason why Snap stock didn’t tank despite its employees finally having the chance to cash out: The stock is near an all-time low, and no one wants to sell at the bottom.
Snap stock closed on Monday more than 48 percent below the $24.48 price it closed at on its first day of trading.
This article originally appeared on Recode.net.
