It appears OpenTable management agrees with us that the stock is overvalued.
OPEN shares have been on a tear since its IPO – up 37% since it opened in May. Perhaps that’s why today the company’s management announced it would be selling almost $100 million in stock, none of which is going to the company.
According to an SEC filing, the company will sell about 3.8 million shares:
“The selling stockholders, including certain members of our board of directors and management, will receive all of the proceeds from this offering, and we will not receive any proceeds from the sale of shares in this offering.”
Really? None of the cash will be put back into the company?
That says volumes about management’s opinion of the stock price. As we wrote after its IPO, we thought the company was healthy but that the stock became overvalued soon after it went public. Here is a list of some of the selling shareholders:
- Jeff Jordan (CEO)
- Matthew Roberts (CFO)
- Joel Brown (SVP, Operations)
- Michael Dodson (SVP, Sales)
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