Chris Lau
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Chris Lau in Value Stocks,

Tutorial: Upcoming Lockup Expiration on Microvision (MVIS) and Dynavax (DVAX)

MicroVision (MVIS) and Dynavax (DVAX) will have insider lockup expiring this week.


Tutorial: What is an Insider lockup Expiry?


The lockup expirations are for employees of the company that are given shares as part of their compensation package. The 'lock up period' ( i.e. when the employee can sell) can be set to 3 months or whatever or over 2 to 3 tranches--- typically over 2 years for a new hire. Most are 33% each time but in companies such as Amazon they end load them as the burn out rate is quite high ( i.e. 20% 20% then 60%). 

The reason why it ( can ) be of interest is that there is suddenly a rush of shares on the open market. For example ( dont qoute me) when Face Book or Snap had its Large IPO the lock was some 3 months so after a good IPO price there can be some rushes of sales as people want to buy that House or Porsche they have been dreaming of. This selling of shares can affect the price and of course show if the employees ( sen man) still want to have shares for longer term value/ growth and have skin in the game. 
Of course if the company is growing sales all of this won't matter much.