These 58 Winning Investors Don't Want to Own Nikola Stock Anymore
The IPO market has come back in full force, and some promising companies are offering their shares on the open market. Electric truck specialist Nikola (NASDAQ: NKLA) recently made its shares available to the public through its merger with VectoIQ Holdings earlier this month, and the stock has soared since the combination.
Long-term investors like to see devoted insiders hang onto their shares, as it indicates their belief that there's more upside in the stock they own. On the other hand, it's common to see shareholders sell off at least a portion of their holdings following an IPO. What's particularly troubling, though, is when investors race to the exits at their earliest opportunity just days after a stock comes public. That's what's happening with Nikola, and it should serve as a warning sign for those who are bullish on the stock.
Image source: Nikola.
Source Fool.com
