In the most recent filings the board voted to create 1.66 million more shares for compensation of the key execs, who spin them in one day and sell them to the common shareholders. As a percentage of the outstanding they are telling you they plan to dilute the shares by 1.66/36.7 million shares or by 4.5%. The double effect of this is that they do not count the value of the stock they give themselves and sell to shareholders in their expenses. This is their NON GAAP earnings. Double whammy.
In the last quarter institutions actually bought more shares. They soaked up 691 thousand shares. The insider execs sold over 140,000 shares while the institutions bought more. Perhaps the additional purchases of institutions was a result of averaging down or perhaps a new opening position. Who knows. But management sold, sold, sold and now have only 336 thousand shares, which is now less than 1%..
The shares the insiders buy are using the option method. They wait until the stock goes down. Maybe they help it go down. Who knows. Then they give themselves options. For example, Jonathan Bush sold 5,000 shares a few days ago for $82 in the afternoon that he paid $26 for in the morning. If he thought the stock was going to go to 100 he would have waited. It is pretty obvious he does not want to take the chance that it will not.
In their last board meeting they had a bit of palace revolt when it came to approving compensation package. The shareholder vote was nearly split 50/50. That means that the institutions are getting a bit ticked off. But the quorum is 75%, not 50% so nobody can stop the execs from cashing out unless they can garner 75% of the shareholder vote. Little guys like the retail investor have no say because they have only 7 million shares total. Further, most of them don't vote anyway.
There is only one positive thing going for this company at this stock level. That is the percentage of shares that are short. It is ripe for a short squeeze.