Is that a bad sign? No, not at all.
Imagine if you had invested millions of dollars in Upwork as a venture capitalist and/or worked on the platform for years, sacrificing many late nights and weekends toiling away on the platform. The hard work pays off, and Upwork goes public raising over $180M.
For the first 6 months thereafter you are in a lock-up period whereby you can’t sell your stock. Instead you continue to work away on platform, buildling an even better platform that goes on to have record quarter after record quarter in revenue and user growth.
Then finally the lock-up period expires and you have the ability to sell some of your stock. Considering the amount of sacrifice you and your family have made to get to this point, it is only natural that top executives along with investors cash some of their stock out.
So insiders sell, that’s what happens after lock up periods, which almost always drives down the price of a stock. An overflow of stock becomes available in the market, which gets gobbled up driving the stock price down further.
