SEOUL – Coupang, Inc.'s founder and CEO, Bom Kim, has established a pre-arranged stock trading plan in compliance with SEC Rule 10b5-1, allowing him to sell up to 15 million shares of Class A Common Stock starting from November 11, 2024. This plan, which follows the company's policies on stock transactions, is structured to meet specific market conditions and trading restrictions, ensuring that sales do not occur at Kim's discretion.
The plan will be in effect until either all 15 million shares are sold or by August 29, 2025, whichever comes first. Kim's decision to sell these shares is reportedly to fulfill substantial financial obligations, including taxes. Additionally, Kim intends to donate up to 2 million shares to a fund dedicated to future charitable contributions.
This move marks the first time Kim has sold shares since Coupang's initial public offering on March 15, 2021. The planned sales and donations represent less than 10% of Kim's total ownership of 174.8 million shares of Class B Common Stock. Post-transaction, Kim will retain ownership of approximately 157.8 million Class B shares.
Coupang, a Fortune 200 technology company listed on the New York Stock Exchange (NYSE: CPNG), operates various services including retail, restaurant delivery, video streaming, and fintech. The company has emphasized that the transactions are subject to change based on stock price fluctuations and other factors, and there is no assurance that the plan will result in the sale of all the shares intended.
Following the completion of the planned share transactions, Kim does not anticipate engaging in further share sales through the end of 2025. The information regarding these transactions is based on a press release statement from Coupang.
In other recent news, Coupang Inc. has reported robust financial results for the third quarter, with earnings and revenue surpassing analyst expectations. The e-commerce giant's adjusted earnings per share came in at $0.06, beating the projected $0.01, and revenue for the quarter reached $7.87 billion, exceeding the consensus estimate of $7.77 billion. This marks a 27% increase year-over-year, with Coupang's Product Commerce segment seeing net revenues rise by 16% year-over-year to $6.9 billion.
Following these developments, Mizuho (NYSE:MFG) increased its price target for Coupang from $23.00 to $25.00, maintaining a neutral rating on the stock. Deutsche Bank (ETR:DBKGn) also raised its price target on Coupang shares to $26.50, while Citi maintained a Buy rating and increased its share price target to $31.00.
These price target adjustments follow Coupang's impressive top-line growth and a notable EBITDA beat. The company's strong logistics capabilities and strategic investments have contributed to its market expansion and reduced losses in areas such as Taiwan and Eats. These are among the recent developments for Coupang, which continues to display strong financial performance despite near-term challenges.
InvestingPro Insights
As Coupang's CEO Bom Kim prepares for his first stock sale since the company's IPO, it's worth noting some key financial metrics and insights from InvestingPro that provide context to this development.
According to InvestingPro data, Coupang's market capitalization stands at $48.23 billion, reflecting its significant presence in the e-commerce sector. The company's revenue growth remains robust, with a 24.69% increase over the last twelve months as of Q3 2024, reaching $28.86 billion. This growth trajectory aligns with an InvestingPro Tip indicating that analysts anticipate sales growth in the current year.
Coupang's stock has shown strong performance, with a 61.02% price total return over the past year and is currently trading near its 52-week high. This positive momentum is further supported by an InvestingPro Tip revealing that 2 analysts have revised their earnings upwards for the upcoming period, suggesting optimism about the company's financial prospects.
While Kim's planned stock sale might raise questions, it's important to note that Coupang holds more cash than debt on its balance sheet, as highlighted by another InvestingPro Tip. This financial stability could provide reassurance to investors concerned about the impact of the CEO's stock transactions.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips that could provide valuable insights into Coupang's financial health and market position.
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