Uber stock (ticker: UBER) has gained 8.6% for the year to date through Friday’s close, compared with a 4.1% drop in the
S&P 500 index,
a broad measure of the market.
Uber announced in early May it was laying off 3,700 full-time employees, and that CEO Dara Khosrowshahi would not take a salary for the rest of the year. In recent weeks, Uber had been in talks to acquire
(GRUB), but no deal was ever struck.
Eckert paid about $500,000 on June 15 for 15,740 Uber shares, an average per-share price of $31.60. For Eckert, a former CEO of Mattel (MAT) who joined Uber’s board in March, it’s his first purchase of Uber stock on the open market. He made the purchases through a trust that he controls, according to a form he filed with the Securities and Exchange Commission.
Uber didn’t respond to a request to make Eckert available for comment.
Eckert has met Uber’s stock-ownership guidelines early. The company’s nonemployee directors are expected to own the share equivalent of 10 times the $50,000 annual cash retainer, within three years of joining the board. In May, however, Uber’s board agreed to forego 100% of its annual cash retainer for the remainder of 2020.
Eckert’s stock purchase is the first by an Uber insider since CEO Khosrowshahi bought $6.7 million of Uber stock in November.
Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.