A Best Buy CEO is selling his stock only to cover the costs of his expensive divorce this week, so shareholders of Best Buy stock have no real reason to worry this week for their money. CEO Hubert Joly will be selling over $10 million of his company’s stock, though financial experts believe that Best Buy’s stock will still rise in price for the rest of 2013, reports the CS Monitor this Wednesday, Sept 11.
Best Buy CEO Hubert Joly is no doubt proud that his company’s stock has all but tripled during this year alone, but the wealthy businessman has been recently forced to dip into and sell some of his stock in order to cover the costs of an expensive, hefty divorce.
"This sale reflects only one thing: Mr. Joly has recently gone through a divorce and needs to sell a portion of his holdings in order to cover the costs of that unfortunate event," affirmed spokesman Jeff Shelman said in a recent statement. "He remains heavily invested in Best Buy."
It is believed that Joly sold roughly $10.4 million in a share sale this summer 2013 in order to help pay for the divorce from his wife, according to Best Buy regulatory filing records. Each of his shares sold at $37 for each share.
Yet in line with the Best Buy CEO’s smart business strategy of taking cost cuts, it is predicted by investors and stock analyst experts that Best Buy’s stock will only continue to climb this Sept. Although the U.S.-based chain still struggles against other big corporate giants in the world of electronics like Amazon.com and Wal-Mart Stores Inc., it is beginning to reveal that it as the potential to not only keep up, but even compete with them.
Analysts believe that despite some shareholders being surprised that the Best Buy CEO was selling so much of his stock (even for a personal matter like the divorce), Joly and his company can continue to boost his stock value and overall earnings through further cost cutting, making deals with good vendors, and helping consumers realize that Best Buy’s prices are not higher than the prices of competitors like Amazon or Wal-Mart.