Coinbase Global Director Sold Over $5.34 Million In Company Stock

Frederick Ernest Ehrsam Iii, Director at Coinbase Global, made a large insider sell on September 3, according to a new SEC filing.

What Happened:A Form 4 filing from the U.S. Securities and Exchange Commission on Friday showed that Iii sold 19,710 shares of Coinbase Global at a price of $272.96 per share. The total transaction amounted to $5,341,724.

They still own a total of 4,487,763 of Coinbase Global worth, $1,158,740,406.

Coinbase Global shares were down at $258.2 after Wednesday's closing.

In legal terms, an "insider" refers to any shareholder who owns at least 10% of a company. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.