Alternative-fuel trucking company
has seen shares slide recently, but Executive Chairman Trevor Milton just bought up stock.
Nikola stock (ticker NKLA) has been slipping after a negative report from a short seller. Nikola has refuted the allegations Friday and Monday. Milton, who founded the company, told Barron’s last week that Nikola stock is undervalued.
Milton paid $1.3 million on Monday for a total of 41,400 Nikola shares, an average per-share price of $30.91 each. According to a form Milton filed with the Securities and Exchange Commission, he made the purchases through M&M Residual, a limited-liability company that he owns. He remains Nikola’s largest shareholder through M&M, which now owns 91.6 million shares.
Nikola didn’t immediately respond to a request to make Milton available for comment.
Barron’s noted last week that a pact for
(GM) to take an 11% stake in Nikola provided the latter with validation while the former received an affirmation of its technology. When asked at a RBC Capital Markets’ virtual conference Monday about the company’s transaction, CEO Mary Barra said GM “has worked with a lot of different partners, and we’re a very capable team that has done the appropriate diligence.”
Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.