S&P Capital IQ‘s Scott Kessler this afternoon raised his rating on shares of Facebook (FB) to Buy from Hold, with a $25 price target, writing that he does not see the stock feeling a big impact from the arrival of the first of a wave of “lockup expirations” on sales by insiders in two days from now.
Shareholders that sold stock as part of FB’s IPO will be able to sell up to 271 million shares starting August 16. This amounts to 14% of FB’s indicated outstanding diluted shares. We do not expect early employees and investors will be aggressive sellers of FB shares at current levels, after the stock has fallen more than 50% from the intra-day high set on May 18, the IPO date.
Facebook shares this afternoon are down $1.03, or almost 5%, at $20.57.
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