Co-founder sells $100 million of Zip shares after stepping down

A cool payday.

| More on:
Modern accountant woman in a light business suit in modern green office with documents and laptop.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Zip Co Ltd (ASX: ZIP) shares have excelled this year and are now up a mammoth 432% this year to date.

They currently fetch $3.44 apiece, up a further 12% in the last month alone.

Such an eye-watering increase in value has created some very happy – and wealthy – shareholders. None more so than Zip's co-founder, Larry Diamond.

However, Diamond has stepped down as a director and US chairman of the buy now, pay later (BNPL) company, announcing his moves this week.

But that's not all the co-founder has been up to. Let's take a look.

Co-founder nabs cool $100 million

Having led the BNPL company since inception, more recently as US chairman, Zip's co-founder Larry Diamond decided to step down this week.

His departure comes after the enormous run in the company's market value in 2024, exploding Diamond's net worth.

Mandatory ASX filings show the former chair sold a large line of Zip shares this week, likely netting Diamond a cool $100 million in cash.

He offloaded 30 million shares at $3.35 each, a modest discount to Monday's closing price.

The sale represented more than half of Diamond's 55-million-share position, held via his Diamond Venture Holdings Pty Ltd vehicle. He now holds approximately 25 million Zip shares with this account.

Diamond's next moves? Starting a family office and philanthropic foundation.

He is set to remain an adviser to Zip.

Zip's performance: A strong comeback story

While Diamond's exit marks the end of an era, it takes nothing away from the company's recent growth, where it has shown fine form.

For the September quarter, the company reported a 19% year on year increase in revenue to $240 million.

Transaction volumes also climbed 22.8%, reaching $2.8 billion, driving a 234% surge in cash earnings.

The company now boasts over 4 million active users in the US, which, if all goes according to plan, looks to be its next growth market.

Investors bid up Zip shares following the update.

ZIp's leadership isn't showing any signs of change either.

CEO Cynthia Scott said Diamond was hanging up the boots "at a time when we have the leadership and broader team executing strongly on a strategy that is delivering for the company and its shareholders". Hard to disagree.

Still, investors will be watching closely as Zip rolls on from here.

Zip shares takeout

Zip shares have grown triple-digits this year, nabbing its former co-founder a hefty payday. With $100 million in the bank (pre-tax), Larry Diamond has now set his sights on his next ventures.

The BNPL stock is up 704% in the past 12 months.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Zip Co. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on BNPL shares

A cool dude looks back at the camera while ziplining above the treetops.
BNPL shares

Up 44% in 2024, can the Zip share price rocket again in 2025?

Will 2025 be a great year for the buy now, pay later stock?

Read more »

A cool dude looks back at the camera while ziplining above the treetops.
BNPL shares

Down 15% in a week, should you buy the dip on Zip shares?

Are Zip shares a good buy after the past week’s 15% fall?

Read more »

A young woman smiles as she rides a zip line high above the trees.
Share Gainers

Up 748% in a year, why a 'long growth runway remains' for Zip shares

Up 748% in a year, these top fund managers remain bullish on the outlook for Zip shares in 2025.

Read more »

A man looking at his laptop and thinking.
BNPL shares

Zip share price sinks on big co-founder news

Some investors are saying bye now, see you later to Zip shares.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
BNPL shares

Why did the Zip share price smash the market again in November?

This high-flying stock made its shareholders smile again last month.

Read more »

Business people discussing project on digital tablet.
BNPL shares

If you'd invested $5,000 in Zip shares this time last year, here's what you'd have today

Let's see how successful an invest in the BNPL provider would have been.

Read more »

A woman sits on a chair smiling as she shops online.
Financial Shares

Zip or Block shares: Which is the more profitable company?

We've crunched the numbers.

Read more »

A man looking at his laptop and thinking.
BNPL shares

Down 6% in a week, should you buy the dip on Zip shares?

Where to next for the BNPL player?

Read more »