The following is an excerpt from SHIRA OVIDE And GREG BENSINGER | August 10, 2012 | WSJ.com |
Reed Hastings, chief executive of Netflix Inc. and a Facebook Inc. board member, disclosed on Thursday a purchase of roughly $1 million in Facebook stock.
In a filing with the U.S. Securities and Exchange Commission, Mr. Hastings disclosed buying 47,846 Facebook Class A shares on Wednesday at a weighted average price of $21.03 each. Facebook’s stock closed trading Wednesday at $20.72.
Mr. Hastings is the only Facebook insider who has disclosed buying stock since the company’s May initial public offering, which valued the company at about $100 billion. The company’s market capitalization is now at about $59 billion.
Typically, purchases of company stock by its own executives or directors are considered a vote of confidence, particularly when the stock has been sinking. Facebook’s shares closed Friday at $21.81, up 3.8%, but well off the company’s IPO, when Facebook sold shares to the public at $38 each.
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