Oracle said Saturday that co-founder and Executive Chair Larry Ellison canceled a plan to sell up to 50 million Oracle shares, worth about $7.5 billion at Friday’s closing price.
Oracle disclosed in a regulatory filing Friday that Ellison had adopted the trading plan on June 22, and that it was scheduled to expire on Oct. 24.
“No Oracle stock was sold under that plan, and he has no other plans to sell any of his Oracle stock,” Oracle said Saturday.
Oracle’s stock has taken a beating this year on growing investor concerns over soaring capital expenditure that has pressured its free cash flow.
The shares are down nearly 23% year to date and were more than 18% below their closing level on June 18, the last trading day before Ellison adopted the plan.
Oracle did not give a reason for the cancellation of Ellison’s trading plan.
Ellison, 82, served as Oracle’s CEO until 2014 and is the company’s largest shareholder, owning over 38% of the company, according to LSEG data.
Earlier in the week, Oracle had reported quarterly results that topped Wall Street estimates and a smaller cash burn than expected, easing some concerns about its debt-fueled spending spree and leading to a jump in the shares on Friday.
However, its stock later reversed course as analysts said a recovery in cash flow remained some way off.
The firm also announced restructuring costs, part of a plan that includes job cuts, will rise by about $700 million.