NEW YORK (TheStreet) -- Facebook (FB) dipped lower during Friday's trading session as investors continue to process the news the social network will unload a total 70 million shares of its Class A common stock.
The company announced on Thursday that 41.35 million of the shares would be sold from CEO Mark Zuckerberg's cache to allow him to pay taxes on a stock option purchase of Class B shares. This marks Zuckerberg's biggest stock sale since he helped take the company public in May 2012.
In a statement, the Menlo Park, Calif.-based business said it intends to use the funds raised as working capital and for other general corporate purposes.
By mid-morning, shares had tumbled 0.9% to $54.56.
TheStreet Ratings team rates FACEBOOK INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate FACEBOOK INC (FB) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."
Highlights from the analysis by TheStreet Ratings Team goes as follows: