Kevin Plank, the founder and CEO of Under Armour, has sold more than $57.6 million of the company's stock under a prearranged trading plan, according to a Thursday filing with the U.S. Securities and Exchange Commission.
Plank and other entities, including the Plank Family Trust, KD Plank LLC and KD Plank #2 LLC, sold 675,000 shares of Under Armour's Class A common stock in transactions over three days this week at prices that ranged from $85.39 per share to $89.60 per share, the SEC filing showed.
Some of the shares had been converted from Class B common stock, which carries 10 votes, as opposed to one vote for every share of Class A.
Plank's transactions had been planned under a trading plan that he agreed to Oct. 28. The plan allows Plank to sell up to 1.1 million shares of his Class B stock and up to 125,000 shares of Class B stock owned by his charitable foundation by the end of the year.
The sales are being done for asset diversification, tax and estate planning, and charitable giving, according to a previous filing.
Under Armour also plans to create a new C class of stock without voting rights, giving owners of each existing share of common stock one share of the new class. The structure is designed to preserve Plank's control over Under Armour as he sells off some shares.
The trading plan enables Plank to sell up to 1.3 million shares of his Class C stock when it's issued and up to 150,000 shares of Class C stock owned by his foundation. Plank would be able to sell his C Class shares after the company's initial distribution and after the new stock is listed on the New York Stock Exchange. Under Armour's board of directors will decide on the timing of the issuance.