Shares of Zillow tumble after co-founders unload stock

Team Zillow ringing the opening bell on Nasdaq in July

Zillow had been experiencing a pretty nice run-up in its stock over the past few months, but the stock tumbled Wednesday after co-founders Rich Barton and Lloyd Frink sold off large chunks of their personal shares. Zillow dropped more than six percent in active trading after Barton sold 375,000 shares at $31.25 — bringing in $11.7 million — and Frink sold 510,400 shares over several days — netting roughly $16 million, according to Bloomberg News.

Zillow went public last summer at $20 per share, and the stock is still trading above that offering price at $28.

It is not uncommon for executives of companies to sell personal shares following an IPO, and other Zillow executives (including CEO Spencer Rascoff; CTO David Beitel; and CMO Amy Bohutinsky) also have sold stock. But the sale by both Barton and Frink, who had worked together at Expedia, raised the eyebrows of some investors.

Here are some of the recent stock sales by Frink and by Barton. We have an email into Zillow to try to determine the current ownership positions of both Frink and Barton, and we will update as we hear more.

Zillow posted strong fourth quarter earnings last week, turning a profit of $922,000 and more than doubling revenues to $19.9 million.

Previously on GeekWire: Following strong IPO, Zillow insiders get to cash out early

  • Dgc111321

    Barton and Frink still have a ton of stock. Just look at the filings you reference. I don’t see this as some massive sell off.

    • Guest

      selling 4-5% of entire stock (and not just available) – that a lot of extra junk on the market to grab

  • http://twitter.com/parkerknapp David Milesi

    Good for them. Take money off the table when you can.

  • Zillow no bueno

    zillow sucks and is full of incorrect listing data.  I’m glad Santa Barbara nixed their MLS agreement with Diverse Solutions after Zillow recently aquired it.