Investors have not acted favourably to the online retailer’s latest news…
The post Why the Cettire (ASX:CTT) share price is slumping 5% today appeared first on The Motley Fool Australia. –
The Cettire Ltd (ASX: CTT) share price is backtracking during early afternoon trade. This comes as the online retailer announced that one of its board members has sold a parcel of the company’s shares.
At the time of writing, Cettire shares are swapping hands for $3.41 a pop, down 6.32%. In comparison, the All Ordinaries Index (ASX: XAO) has also fallen to 7,719 points, a drop of 1.13%.
Non-executive director selling
The Cettire share price is falling following an announcement by the company today.
According to the release, Cettire non-executive director Bruce Rathie executed an on-market trade on 2 September.
Rathie’s New South Wales-based private company, Nestegg No 1, disposed of 200,000 ordinary shares at a price of $2.55 apiece. The sale accounts for around 20% of Rathie’s portfolio in Cettire.
As a result, Rathie now holds a total of 810,000 shares, comprising of 10,000 shares in direct interest. The remaining shares are through two indirect companies, Katrat Investments and Rathie Super, each holding 400,000 shares.
Interestingly, the sale comes after the company revealed it beat its FY21 prospectus forecast and upgraded guidance.
Cettire founder and CEO Dean Mintz commented on the full-year results:
It has been an exceptional year for Cettire, with the company rapidly growing. I am particularly proud of the substantial increase in active customers, very strong revenue growth, robust product margins and the increasing proportion of revenues from repeat customers.
The achievements over the past 12 months, both operationally and financially, demonstrate the traction we have with consumers, the scalability of our business model and the benefits of our proprietary technology platform.
The positive news led the Cettire share price to reach an all-time high of $3.68 yesterday.
Cettire share price snapshot
Despite today’s fall, Cettire shares have accelerated by almost 600% in the past year, and are up 640% year-to-date.
Based on today’s price, Cettire presides a market capitalisation of around $1.3 billion, with approximately 381 million shares on issue.
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Motley Fool contributor Aaron Teboneras 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 Cettire Limited. The Motley Fool Australia has recommended Cettire Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.