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By Aman Jain

Facebook is seeing some insider selling lately. Investors should remain confident on the stock, not paying much heed to the recent lawsuit.

Facebook Inc (NASDAQ:FB) Chief Technology Officer Mike Schroepfer and Chief Product Officer Chris Cox have recently sold their shares in the company, and have detailed about the transactions in Form 4 filings Tuesday with the Securities and Exchange Commission (SEC).

Analysts bullish on Facebook

Facebook Inc. Chief Technology Officer Mike Schroepfer converted 20,000 class-B shares to class-A common stock, and then sold 20,000 class-A shares at $72.42 a piece. Post transaction, Schroepfer holds 228,997 shares of Facebook class-A common stock.

On Monday, August 4th, Chief Product Officer Chris Cox sold 11371 restricted stock units that were due to expire on August 25th, 2019. Cox also sold 4050 class-A shares at $72.1685 per share, 1,884 at $72.7737 a piece and 5,437 at $72.42 each.

Facebook shares have received ratings from various research houses recently. S&P Equity research analysts have assigned Average rating to the stock, and assigned a price target of $3.00 in a research note to the investors on July 25th. Nomura analysts maintained a Buy rating, with a price target of $82.00 in a research note to investors on July 24th. Separately, Raymond James analysts maintained an Outperform rating, and increased the price target from $77.00 to $80.00 in a research note to investors on July 24th. Facebook presently has an average rating of Buy and a consensus target price of $79.11.

Investors should not worry about the lawsuit

Recently, a lawsuit was filed against Facebook, accusing the social networking company of misusing personal data. In a short span, the class action lawsuit has gained support of over 17,000 individuals. However, according to a report from Silicon Valley Business Journal, investors should not be really worried about this case, as this is not the first time when Facebook has gotten into such a legal tussle. The social networking site has been accused of collecting data for advertisers, sharing data with the National Security Agency through its PRISM program, and conducting mood swing studies on users.

As per the report, investors should not be cautious as long as advertisers are comfortable and continue giving ads on Facebook. Also, at large, customers are not worried, because most of them have accepted the fact that to continue using Facebook Inc. requires some sort of sacrifice in privacy. Curtis Silver of the Next Web explained it in the best way, saying, "There is an old adage that applies here: if you don't pay for the product - it means you are the product."

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Source: Facebook Inc. Witnessing Insider Selling This Week