Koss family makes nearly $4.9 million in stock sale
The Koss family has pocketed nearly another $4.9 million by selling stock, bringing the total payout to Koss Corp. “insiders” to more than $50 million.
Documents filed Friday with the Securities and Exchange Commission show members of the Koss family and the Nancy Koss Trust selling thousands of more shares.
The Nancy Koss Trust in honor of the company founder’s late wife sold around 100,000 shares of Koss stock for more than $3.5 million, according to documents filed Friday with the Securities and Exchange Commission.
President and CEO Michael J. Koss sold 36,000 shares for $960,030 according to the new filings for himself and as a co-trustee for his children. Vice President of Sales John C. Koss Jr. sold 15,000 shares for $374,400.
Members of the Koss family have been selling shares of the company’s stock since the share price soared because of interest from online traders. Members of the family have sold around $38 million in stock.
Other high-ranking employees at the company have sold around $12 million worth, according to SEC filings.
In all, Koss “insiders” have sold more than $50 million in recent days.
“These people have to feel sort of like they won the lottery,” said Joe Maier, senior vice president and director of wealth strategy at Johnson Financial Group. The company has not made any public statements about its stock in recent days. Koss did not respond to a reporter’s questions Monday.
The Milwaukee-based stereophonemaker, based on its stock price, was worth around $25 million at the end of 2020. Before the stock market frenzy, shares of Koss were selling for around $3. In the last five years, the stock never traded above $5 a share. It peaked at $127.45 a share on Jan. 29.
The stock was down Monday around 5% to close as $19.
“The price is just too high to turn it down,” Maier said.
Koss reported an 18.4% increase in sales in its last quarterly report for the three months ending Dec. 31. Koss had reported a decline in earnings for the previous six quarters.
Koss was founded by John C. Koss in 1953 as a television rental company. The Koss family has retained control after going public in the late 1960s. Company insiders held around 80% of Koss stock prior to this selloff.
“They have a lot of shares to sell before worrying about losing control,” Maier said.
The only bullet-proof way to stay in control is to maintain ownership of 50% of the stock, he said. The family likely isn’t concerned that the traders buying Koss stock are trying to gain control.
“This doesn’t feel like people trying to take over the company,” Maier said. “This is a bunch of people who are investing in the company to make a social statement.” No documents filed with the SEC show another new individual reaching 5% or more ownership.