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.