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Investing.com -- Shares of ODDITY Tech Ltd. (NASDAQ:ODD) tumbled 8% after the company announced a significant block trade of Class A ordinary shares. The transaction involved the sale of 5.5 million shares by an entity affiliated with Oran Holtzman, co-founder and CEO of ODDITY.
The sale, which aims to enhance the free float and trading liquidity of the company’s stock, has raised concerns among investors, leading to the stock’s decline. Despite the sale, Holtzman has affirmed his commitment to the company by entering into a one-year lock-up agreement, ensuring he will not sell additional shares during this period. Following the transaction, Holtzman’s ownership stake in ODDITY stands at approximately 23%, with him maintaining control over the majority of the voting power.
ODDITY has stated that it did not receive any proceeds from the sale of shares.
Investors often view large block trades as a signal of a major shareholder’s sentiment towards the company, and such sales can lead to volatility in the stock price. The lack of any immediate financial benefit to ODDITY from the transaction further contributed to the negative investor reaction.
The market’s response to the news reflects the sensitivity of stock prices to changes in share ownership and liquidity, especially when it involves insiders or key stakeholders. As the market digests this development, the long-term impact on ODDITY’s stock remains to be seen, with Holtzman’s continued control and lock-up agreement serving as stabilizing factors.
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