With one week to go, Demand Media shares hit fresh lows.
Next week ends a 180 day lock up period in which many Demand Media option holders can finally sell their shares in the company.
Unfortunately for them, shares are now trading at only $11. That’s well below its $17 opening price for its debut in January, when the share price promptly shot up to $23.50. The stock peaked at $27.38 before beginning its precipitous fall.
That doesn’t mean you need to feel bad for all Demand Media employees, however. VIP shareholders got to sell millions of shares during the IPO and a good number of employees have options priced in the single digits.
Still, it must be heart-wrenching for employees to watch the stock price fall during the lockup period. My guess is the current downward pressure on the stock has a lot to do with the expiration of the lock-up period.
We’ll see how many shares hit the market in coming weeks.
120 Volt Single Speed Jigsaw says
Even still, it’s surprising it is down that low.