The Chairman and CEO of HUB24 have been selling shares…
The post HUB24 (ASX:HUB) share price falls 8% after $8.1m share sale by chairman appeared first on The Motley Fool Australia. –
The HUB24 Ltd (ASX: HUB) share price has been among the worst performers on the ASX 200 on Monday.
At one stage today, the investment platform provider’s shares were down as much as 8% to $29.16.
The HUB24 share price has recovered a touch this afternoon but remains down 6% to $29.69 at the time of writing.
Why is the HUB24 share price under pressure today?
The decline in the HUB24 share price on Monday appears to be a combination of profit taking after some strong recent gains and news that an insider has been selling shares.
In respect to the latter, a change of director’s interest notice reveals that its Chairman, Bruce Higgins, has offloaded a large number of shares on-market since the release of its full year results.
The notice, that was released after the market close on Friday, explains that Mr Higgins sold a total of 269,700 shares on 25 August.
This comprises 49,700 indirectly owned shares that were sold at an average of $30.47 per share and 220,000 directly owned shares sold for $30.00 per share. Combined, this equates to a total consideration of just over $8.1 million.
In addition to this, the company’s Managing Director and CEO, Andrew Alcock, sold shares on-market late last week.
However, while Mr Alcock sold 175,000 shares at an average of $30.00 per share, he also exercised some options. The CEO picked up 106,464 shares at a bargain price of $4.46 per share and 78,077 shares at an almost as attractive discount of $7.09 per share. This compares to the current HUB24 share price of $29.69.
He advised that the proceeds of the sale were “to be used to exercise options, fund taxation liabilities and personal liquidity.”
Is this a buying opportunity?
One broker that might see the weakness in HUB24 share price as a buying opportunity is Morgans. Last week it upgraded the company’s shares to an add rating with an improved price target of $31.65.
Based on the current HUB24 share price, this implies potential upside of 6.5% over the next 12 months.
Should you invest $1,000 in HUB24 right now?
Before you consider HUB24, you’ll want to hear this.
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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. owns shares of and has recommended Hub24 Ltd. The Motley Fool Australia has recommended Hub24 Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.