Carnival Director Boosts His Stake by 997%
An SEC filing that just became publicly available reveals one of the directors at Carnival Corporation (NYSE: CCL) made a massive insider purchase on April 6, shortly after the company made a secondary stock offering of 71.9 million shares. Director Randall Weisenburger purchased 1.25 million shares in the cruise ship company, bringing his total ownership to approximately 1.38 million shares.
Hit hard by the coronavirus pandemic, which has seen major outbreaks in the tightly packed environs of cruise vessels, Carnival issued the additional stock to raise operating funds. The stock sold for $8 per share, priced very close to its 52-week low of $7.90. The secondary offering represents an attempted balancing act between diluting shareholder value and raising the approximately $1 billion Carnival needs monthly to stay operational.
Image source: Getty Images.
Source Fool.com
