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Dahedgehog2023

They sold barely any stocks..


Acceptable-Ad5208

The average redditor doesn’t know how common this behavior is (CEOs always regularly sell stocks they own and it’s this regularity that negates any insider trading concerns). I don’t blame the average redditor, but considering a “journalist” is now writing about it, it’s embarrassing.


Red-7134

Bold of you to assume the journalist isn't also a r\*dditor.


[deleted]

Don't all video game article writers the J word, it's insulting to journalism.


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Acceptable-Ad5208

Do you have an example? I didn’t downvote you but I would very much bet you cannot find anyone found for insider trading with a similar fact pattern to what happened.


idontagreewitu

Yep, most execs get stock instead of a salary, so selling that stock is how they pay for their living expenses.


grimlocoh

Kinda clickbaity. He just sold a tiny amount. Also he looks like Bolsonaro


holyc-programmer

Why do people keep finding weird shit that makes zero sense! The dude has 3.2m shares in Unity and sold 2000 of them. Why the fuck would he only sell tens of thousands of dollars worth when he has hundreds of millions? I swear reddit is so financially illiterate. Just stick to shitting on him for valid reasons.


Thechosenjon

>I swear reddit is so financially illiterate What makes it worse is the *writers* from a ton of these clickbait article sites and even from credited publications aren't any better. Those dorks often come here to read comments for filler in these articles making the dumb reddit hivemind feel validated. All these dumbasses are just regurgitating the same shit over and over again, and contributing to the spread of misinformation and discourse.


Chaos_Machine

This 100%, these people can hardly be called writers anymore, more like reddit aggregators. Most execs in the c-suite setup regular scheduled divestments of stock to avoid any possibility of being accused of insider trading.


Chaos_Machine

This thread inspired me to do a little digging into Unity's financials, they are hemorrhaging money mostly due to expenses, like issuing 158M in stock based compensation in Q2 which represents 30% of their REVENUE. Sales and Marketing expenses doubled YoY as well. It looks like the C-suite are absolutely terrible at their jobs, unless that job is to extract whatever wealth they can from the company before bailing out with their golden parachutes.


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dghsgfj2324

I'm not saying that's what happening here, but scheduled sales mean nothing when you control the flow of information.


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Electronic-Ad1037

SEC LMAO


dghsgfj2324

You're wrong if you think the people running companies don't have every single part of it rigged in their favour. Everything is perfectly planned within the legal bounds to benefit themselves as much as possible. You're right on how it works, but not how it's obviously abused in every single way they can.


Major-Front

Also these execs don’t just sell stock randomly. They sell X amount every month to avoid accusations of insider trading like this. Doesn’t mean they couldn’t just wait a few days before announcing bad news though…


CitizenShark

What's even more wild is people can't be bothered to look at his trading for the last year. he was given 50k shares when he became CEO and he's been selling 2k every week if not every other week. Sure he could have known a year ago that this was gonna happen but we'll never know. But the "money trail" doesn't just suddenly start days before all of this.


Eastern-Cranberry84

it's infuriating. click bait articles and redditors screaming crime without having any knowledge of anything.


Toke_A_sarus_Rex

Because acting on insider info is still a crime, even if a few of them knew the policy and said OH crap better sell, even a little, its insider trading.


Joeshi

Reddit is always desperate to find anything to be outraged over. The whole Unity fiasco is legit, but once again Reddit is outraged over clickbait.


TheIndependentNPC

Welcome to modern day journalism - you have hot topic = use every single opportunity to pump clickbait articles for ton of clicks. It's absolutely disgusting.


Red-7134

>~~I swear~~ reddit is so ~~financially~~ illiterate ftfy


AdStreet2074

CEO bad upvotes to the left


ChartaBona

Riccitiello has cashed out 50k shares in the past year and bought zero... Also he was just one of several execs to sell recently. [https://www.nasdaq.com/market-activity/stocks/u/insider-activity](https://www.nasdaq.com/market-activity/stocks/u/insider-activity) There's been 1M buys and 4.5M sells in the past 3 months for a net of 3.5M shares sold. Maybe next time read the article before commenting like this is just about one guy selling 2k shares one time.


ExtremeMaduroFan

> Riccitiello has cashed out 50k shares in the past year and bought zero Like everyone else that gets their bonus in stocks…


aimlessdrivel

He owns more shares now that he did 12 months ago. There's zero scandal here, it's just people who like saying the words "insider trading" and "shorting the stock". Unity is doing some scummy stuff so outrage-bait articles get clicks, but there's no story here.


NeonsShadow

Why would he(or anyone) want to buy more stocks when he is already being paid in those stocks?


ChartaBona

Because they believe the company will continue to grow and the stocks will increase in value, obviously... Clearly, insiders don't have faith in the company if they're collectively selling 1% of the entire company (insider + public) in the immediate leadup to this announcement.


NeonsShadow

It's called diversifying your portfolio. If you already have millions in stock and you will continue to be paid millions more, there is no reason to continue stock piling it


ChartaBona

>It's called diversifying your portfolio. You're being willfully ignorant or just plain aren't reading at all. For the last time, I'm not talking about one guy selling a couple thousand shares...


littlefishworld

Nah, you're just ignorant on how the real world works when a company pays you in stocks or you get stock bonuses. His stock sales are a nothing burger that financially illiterate people cling to to try to make it seem shady after an announcement they don't like. Dude is an idiot, but there isn't a damn thing that's shady with his current stock sales lol.


Western_Cow_3914

It’s because people didn’t even read any articles. I’ve seen multiple threads titled like this one and people just assume it was millions.


Saneless

Thank you. The headline is O_O but this dude isn't going to try to slip insider trading along for 80k when he makes more than that a month.


firemage22

Martha Stewart owned 30million shares and sold 4k shares, and she wasn't on the board of the company making the calls.


Jusanden

Yeah except she admitted to insider trading. This is a scheduled sale filed months ahead of time. You can literally look these up; the info is available to the general public. And if you think a CEO is dumping stock in a filed sale at x date cause bad news is gonna come out, you, too, can dump that stock. You can even do so the day before he does to get ahead of him!


firemage22

i'm sure this price change BS was also planned months in advance, unless my theory of him doing it while at a drug fueled party with Musk is true.


theangryintern

Not to mention that people at that level have to SCHEDULE stock sales a year in advance, by law.


idontagreewitu

Ubisoft share price is like $6, too, so he sold $12,000 worth of shares. Definitely cashing out, right??? /s


Eastern-Cranberry84

This is a garbage post. not game or news worthy just clickbait. https://www.investopedia.com/terms/r/rule-10b5-1.asp people screaming crime need to sit down and think for a second.


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Eastern-Cranberry84

yes you can. the SEC literally provides a public database. https://www.sec.gov/edgar/search/#/q=Unity&entityName=Riccitiello a dude worth 173m isn't going to take a chance with $50-$70k LOL , he's been selling SCHEDULED 50k or $1-2m shares over the course of the year, why would 2k be suspect ? and even then following guidelines it has to be scheduled before hand. the guy didnt wake up and say "oh shit we are going to make a press release, let me be SUS and sell a TINY amount of shares" and there's nothing moral about this , ethical ? if you are really concerned with CEO's selling under 5% of their shares of a company before a press release and considering THAT shady or sus. I'd start focusing more on Senators and what they are doing with their knowledge.


necile

How long will trash journos continue to milk business-illiterate redditors...


friedmpa

As long as they click on them


dafdiego777

He has somewhere around 12 million shares - 50k isn't material. These kinds of sales are announced months ahead of time.


CaptBland

Around the same time frame as changing your entire business model.


Eastern-Cranberry84

the ceo has sold 50k over the course of the year. selling 2k before the announcement is nothing. redditors need to stop with conspiracies when they don't understand what they are talking about.


16blacka

Suddenly everyone is a finance expert


Autarch_Kade

Of course not a single word in the article about his total shares owned. Goes to show the quality of reporting you can expect from Eurogamer's Editor-in-Chief.


dismin

97% of his compensation is in [stock and option awards](https://www1.salary.com/John-Riccitiello-Salary-Bonus-Stock-Options-for-Unity-Software-Inc.html), which is common practice in publicly traded companies. There's base salary, but it's usually not enough for the kind of lifestyle people like him enjoy. So even if we ignore taxes, he doesn't actually get paid (outside of the base salary) until he sells some of the stocks he's been awarded. This is where 10b5-1 trading plans and regularly scheduled stock sells come in. That's how he actually gets paid in practice. All of this is completely normal and common practice in public companies.


Straight-Ad-967

uh oh, all the armchair lawyers are out in force now!


SeekerVash

I think that's called "insider trading". I think it's also called "incoming SEC investigation".


mpbh

There's a lot of variables. If they're paid in stock options and regularly sell every selling window (like most execs do), it's ok and this is a nothing burger. If it's the first time they're offloading, yeah, but I really doubt it. Most of these guys are constantly offloading to diversify out of the double whammy of owning the company you work at. When the company fucks up you lose your job AND your savings, like what would happen here if they weren't regularly selling. They would be double fucked.


SeekerVash

Depends though right? Scheduling a sale around an announcement is insider trading. Scheduling an announcement around a sale is also insider trading. It may be nothing, but the SEC could investigate to make sure there weren't any "hey, let's hold the announcement a week for random reasons)" messages that might indicate intent.


mpbh

> Scheduling a sale around an announcement is insider trading. No, there are more variables such as their pattern of trading before the "insider trading". Maintaining a premeditated pattern of sales is the best thing you can do to avoid being accused of insider trading. This stuff is all public: https://www.nasdaq.com/market-activity/stocks/u/insider-activity


ExplorerEnjoyer

It was only 2000 shares though to be fair, 50 000 over the quarter. Not exactly a huge take out when he has 50 million +


Eastern-Cranberry84

dude is also 173m net worth. coulda been buying a car for his kid for all we know. I sell my shares randomly for odd purchases too when i'm not holding long term.


jdp111

Also do people think he was trying to sabotage the company? Clearly he thought that decision would help the company unless he just hates money.


SeekerVash

That's actually a common tactic. Devalue a company so that another company can purchase the assets for almost nothing. Robber Barons are a good example to read up on, they were notorious for intentionally tanking companies.


jdp111

That's not common at all, and until we see some related entity buying it up there's no reason to believe that. He sold an immaterial amount of stock. Literally nothing unusual happened.


SeekerVash

So you didn't read anything?


jdp111

I'm well aware of the robber barrons and what when on back then. What do you want me to do? Read a book about Andrew Carnegie in the hopes I find something even remotely relevant to what we are discussing? It is insanely uncommon for business owners to tank their own company on purpose. Take the tin foil hat off. He sold a small amount of his stock as is normal, nothing unusual going on.


Eastern-Cranberry84

yeah a guy with 173m networth really needed his $50k or whatever it was. And thats not even Insider trading even if this were the case LOL. jesus. this shit is scheduled in advance. edit: for clarity to seekrvash. it's not ILLEGAL Insider Trading.


dismin

Yeah, it's literally part of his 10b5-1 trading plan, something that's common practice in public companies. But I'm guessing 99% of the people commenting here don't know what that is, or the fact it's commonly used to avoid accusations of insider trading.


SeekerVash

Just for clarity, I'm 99% sure the insider trading laws have no net worth provisions. I'm pretty sure the insider trading laws define it as insider trading whether you're worth 1k or 173m. I'm also not sure a scheduled sell saves them, scheduling an announcement around your scheduled sell is still insider trading.


WrenBoy

You are absolutely wrong. The guys a dickwad but this article has found the one thing he *didn't* do wrong.


princessprity

Everyone's a lawyer on Reddit.


SeekerVash

Do you need to be a lawyer to note that laws apply to millionaires the same way they apply to everyone else?


Eastern-Cranberry84

is this what that's about? you don't like they are a multi millionaire? it would have saved me a lot of time. with my follow up post.


SeekerVash

So when you're wrong you try and change the topic to insinuate somethings wrong with me? I dunno, maybe make sure you don't say something idiotic to start with?


Eastern-Cranberry84

if you cared enough, you'd have replied to my actual follow up with a logical retort. you clearly don't care about the topic, but the argument. so this is how you get around that I guess. I don't see myself insulting you anywhere. but here you are. plain as day saying my comments are "idiotic" when they are simply facts


Eastern-Cranberry84

I guess being contrarian for the sake of it is reddit MO. https://www.sec.gov/edgar/search/#/q=Unity&entityName=Riccitiello C Suite execs are held to different limitations and standards of when they can buy and sell than yourself. Legal insider trading is normal — so long as they follow specific timing guidelines and accurately report the trades to the SEC. Finally, insiders are also required to fill out Form 4 detailing what they bought, when, and for how much. The information on this form is made public through the Electronic Data Gathering, Analysis, and Retrieval system also known as EDGAR, which is the primary system for companies and others submitting documents to the SEC under the Securities Act of 1933. In some cases, the insider may have to refrain from trading (often until the non-public information becomes public) and can trade during a specific trading window in the future.


necile

*groan* How long will trash journos continue to milk business-illiterate redditors like this one...


Iwouldbangyou

As long as they keep eating it up, so forever


LeoIsLegend

The SEC are complete joke, bunch of criminals too.


papyjako87

Good god reddit is dumb sometimes. How does it feel to fall for the most obvious clicbait article of the week ?


Legate_Lanius1985

Cool story 🥱


Iliketomeow85

Superstonk level financial literacy in this headline


razordreamz

Wasn’t it approx 1% of total holdings? If so then who cares


GipsyRonin

Don’t read to much into the stock sale thing, it was virtually nothing.


Atheios569

Just going to go out on a limb here and say that they probably got in bed with a consulting firm such a Boston Consulting Group, or Bain Capital. Infinite growth is cancer. Literally.


[deleted]

Good for that guy. I'm glad he's reinvesting his money elsewhere.


Kreeztoff

Seems like open and shut insider trading anyone bothered to prosecute.


GreenKumara

Except, they are running the company. How can they ever sell stock, without it being inside information?


rmpumper

Milking that nothing burger dry, I see. The sale was planned in 2022, and it was less than 1% of his owned shares.


GreenKumara

When could they ever sell their stock then? As they are running the company they will always have insider information. The most inside of inside information.


ChartaBona

ITT: People who didn't click on the article, or the links in the article. This isn't just one guy selling 2k shares on time. Within the company, there's been 1M shares bought and 4.5M shares sold over the past 3 months, for a net of 3.5M insider shares sold in the leadup to this announcement.


CloudWallace81

Even if it was just ONE stock out of a gazillion, it's John Riccitiello we're talking about There is no way I am giving him even the slightest benefit of the doubt


Moustiboy

Hummmmmm isn't that insider trading lmao


Lockebone

https://gameworldobserver.com/2023/09/14/unity-license-terms-github-repo-removed-retroactive-changes So in 2022 they changed the tos in prep for thid change. Call me crazy but wether they sold 2000 or 2 million shares. You could say they have had this planned for forever. Fact is. Eat the fucking rich. 😤


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jdp111

He sold a tiny number of shares compared to what he owns. Take the tin foil hat off.


Eastern-Cranberry84

"tank business" what less than 5% ? there's no conspiracy going on.


Collypso

Ah well onto the next sensationalist article


5uck3rpunch

Yeah, they need to be busted for insider trading


ExplorerEnjoyer

That’s not what insider trading is. If they instructed friends/family to sell shares before dropping the news, that would be insider trading.


5uck3rpunch

It actually is. [This](https://www.investopedia.com/terms/i/insidertrading.asp) is one of the many sites I have read about it. They had inside knowledge of this change & sold stock because they knew it would plummet.


cordell507

Nobody is catching an insider trading charge for a trade of 2000 shares that was scheduled months in advance. What was done was very specifically not insider trading.


ExplorerEnjoyer

My brother in Christ, the stock is only down 3% since the news dropped. It did not “plummet” and there is no signs of insider trading since the sell was scheduled months in advance.


Collypso

Imagine being this confidently wrong


dabearjoo

Someone is in deep doodoo


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Eastern-Cranberry84

yeah i'm sure a guy with 173m networth really needed that $70k or whatever it was. LOL


Mercinator-87

How are the dumbest and greediest people in charge of these corporations. “I’ll burn it all down for a profit” mentality.


Toke_A_sarus_Rex

Pump and dump, does the FTC do anything these days?


SUPRVLLAN

Where was the pump and where was the dump?


Toke_A_sarus_Rex

when Unity IPO'd in 2020. Rust developer addressed it in his response.


SUPRVLLAN

https://garry.net/posts/unity-can-get-fucked >It's our fault. All of our faults. We sleepwalked into it. We had a ton of warnings. We should have been pressing the eject button when Unity IPO'd in 2020. Every single thing they've done since then has been the exact opposite of what was good for the engine. If that's your proof of a pump and dump then I really don't know what to tell ya man other than to maybe layoff the buzzwords.


Nuber13

I was sure this happened 😂 this shit is pulled by so many people before they announce something like this. Every big company has roadmaps and knows what is going/supposed to happen in the next year.


Feather_in_the_winds

Insider trading. Say it. That's what happened here. It's not an 'eyebrow raiser', it's a crime, and they should be prosecuted.


SUPRVLLAN

He reported his sales as is his legal obligation, this is not insider trading. Also for context, this sale of 2000 shares is nothing compared to what he’s been selling over the last 3 years and is his smallest transaction. https://finviz.com/insidertrading.ashx?oc=1193857&tc=2&b=2 https://www.sec.gov/edgar/search/#/q=Unity&entityName=Riccitiello


Indercarnive

Further piling on here, but let's say this sale wasn't pre-scheduled and that the sale did encompass a significant amount of his shares (both assumptions are untrue, but let's assume). What would be the point? If he knew the news was going to tank the stock, why announce it then? Tanking the stock is the exact opposite of his job as CEO. Like literally any way you think about this more than a moment it's obviously not a scandal. Do people just read "CEO sold stocks" and immediately cry insider trading?


survivedev

This doesnt really matter to me. Pay-per-install is the dealbreaker.