Insights

Why the Uniti (ASX:UWL) share price crashed 17% on Tuesday

The Uniti share price had an eventful afternoon…
The post Why the Uniti (ASX:UWL) share price crashed 17% on Tuesday appeared first on The Motley Fool Australia. –

The Uniti Group Ltd (ASX: UWL) share price had a volatile end to the trading session on Tuesday.

The telecommunications services provider’s shares crashed as much as 17% in late trade to $3.42.

However, the Uniti share price soon rebounded to be down 5% to $3.90 before being placed into a trading halt.

Why is the Uniti share price sinking?

Investors were selling down the Uniti share price this afternoon after it emerged that its Executive Director, Vaughan Bowen, has appeared in court accused of insider selling. This was prior to his time with Uniti.

As we covered here, Mr Bowen allegedly sold $25.7 million worth of Vocus shares in 2019 while possessing inside information.

The Australian Securities and Investments Commission (ASIC) alleges that Uniti’s Executive Director, who was the Vocus Chair at the time, sold 5,617,554 Vocus shares on 4 June 2019.

After a relatively flat day on 4 June, the telco’s shares crashed lower a day later after EQT Infrastructure IV Fund withdrew from takeover talks. ASIC alleges that Bowen knew that the takeover discussions were over when he sold his shares, saving him ~$4.5 million.

Why did Uniti request a trading halt?

Management requested that the Uniti share price be put in a halt this afternoon so that it could respond to the news.

Its trading halt request was: “To enable an orderly release of information regarding an announcement regarding a member of the executive team in response to media activity.”

The company confirmed that it expects the announcement to be made “no later than commencement of trading on Wednesday 15 September 2021.”

All eyes will be on the Uniti share price when that announcement is made. Year to date, the company’s shares are up an impressive 123%.

The post Why the Uniti (ASX:UWL) share price crashed 17% on Tuesday appeared first on The Motley Fool Australia.

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

Before you consider Uniti, 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 Uniti 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

5 ASX shares under $10 that have more than doubled in the past year

4 ASX shares to hold for 5 years

Here are the top 10 ASX 200 shares on Tuesday

Why HUB24, MNF, Nanosonics, & Uniti shares are surging higher

Which ASX 300 shares are the biggest winners and losers on Tuesday?

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 recommended Uniti Group Limited. 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!