The CEO of RCR Tomlinson Limited (ASX: RCR), Paul Dalgleish, seems to think it’s a good time to sell shares in his company.
And it seems Christmas has come early for the Australian Tax Office and Dr Dalgleish who cashed in $10.12 million worth of RCR stock.
Dr Dalgleish has done well for the company and his bank balance this year as the RCR Tomlinson Limited share price has gone from $2.43 to about $4.08, representing a gain of around 68 per cent.
Dr Dalgleish timed his selloff nicely when he this month offloaded 2.3 million shares for $4.40 each.
But, seemingly wary of any potential fallout from the large sale, Dr Dalgleish has apparently sought to ease the nerves of shareholders that might be a bit concerned.
“I am strongly committed to the future growth of RCR and remain the largest private shareholder and a top 10 shareholder with over 4 million shares,” Dr Dalgleish said.
“Proceeds from the sale will be used primarily to fund commitments to the Australian Tax Office.”
The engineering and infrastructure company has seen its share price make a solid comeback since it sank to $1.14 in early February 2016.
Other ASX engineering companies that have this year seen their stock climb include Worleyparsons Limited (ASX: WOR), NRW Holdings Limited (ASX: NWH), Macmahon Holdings Limited (ASX: MAH) and Cimic Group Ltd (ASX: CIM).
But it hasn’t been all good news in the sector with GR Engineering Services Ltd (ASX: GNG) and SRG Ltd (ASX: SRG) unable to this year provide shareholders with returns close to the companies mentioned above.
RCR, with a market value of about $691 million, recently announced that it had been selected as the preferred contractor for two major solar farm contracts, the Clermont and the Wemen solar farms, together worth about $260 million.
RCR also announced this month that it had been awarded a contract worth about $170 million to commence work on the Haughton Solar Farm, being developed by Pacific Hydro Australia.
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Motley Fool contributor Steve Holland has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.