Insights

BrainChip (ASX:BRN) share price rises despite CEO selling 9m shares

It has been a decent start to the week for the BrainChip share price…
The post BrainChip (ASX:BRN) share price rises despite CEO selling 9m shares appeared first on The Motley Fool Australia. –

The BrainChip Holdings Ltd (ASX: BRN) share price is pushing higher on Monday morning.

At the time of writing, the artificial intelligence (AI) technology company’s shares are up 3% to 49 cents.

Why is the BrainChip share price on the move?

Investors are bidding the BrainChip share price higher today despite the company revealing that its Founder and CEO, Peter van der Made, has been offloading shares again.

According to the release, Mr van der Made has followed up his sale of 5,498,000 shares in June and 1,706,685 shares two weeks ago with a further sale of 8,993,315 shares.

Based on the BrainChip share price at Friday’s close, these shares were valued at just over $4.3 million.

Though, potentially due to concerns that the BrainChip share price could tumble on the news, the buyer and seller have agreed that the consideration will be determined at a later date. This will be based on a volume weighted average price.

Why is the founder selling?

Given how some investors have big concerns over the valuation of the BrainChip share price and the viability of its technology, having the founder sell a large number of shares isn’t overly confidence-boosting for shareholders.

However, Mr Van der Made remains positive on the company’s future and notes that he still retains a significant holding.

He commented: “I remain BrainChip’s largest shareholder, and I have complete confidence in our technology, our company, the management and board. Overall, I have sold a relatively small parcel of shares and retain over 160 million shares in the Company, which represents just over 9% of the total shares on issue. Like all shareholders, I want to see my shareholding appreciate over time, and I am very confident it will. I want to assure you that I am fully committed to BrainChip and I have full confidence and faith in the success of our products, our strategy and out future.”

These comments appear to have been enough to stop the BrainChip share price from falling today.

Though, it is worth noting that despite today’s gain, the BrainChip share price is down 26% over the last 12 months.

The post BrainChip (ASX:BRN) share price rises despite CEO selling 9m shares appeared first on The Motley Fool Australia.

Should you invest $1,000 in BrainChip right now?

Before you consider BrainChip, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and BrainChip wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Want to invest in space? Here are 4 ASX shares

BrainChip (ASX:BRN) share price sinks 6% on capital call notice

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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 Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!