The Altium Limited (ASX: ALU) share price has drifted lower this morning after a late announcement on Tuesday revealed that its CEO had offloaded 200,000 of the company's shares.
In early trade the electronic design software company's shares were down almost 3% but have since recovered and are down just over 0.5% to $24.10 at the time of writing.
Why did Altium's CEO offload shares?
Altium's CEO, Aram Mirkazemi, transferred 200,000 shares from his considerable shareholding to his sister via an off-market trade on Friday of last week.
Based on the current share price, this parcel of shares is worth approximately $4.8 million.
According to the release, the transfer was done to provide for accommodation and future care for his elderly parents in Australia.
The good news for shareholders is that despite this sizeable transfer, Altium's CEO still has his interests firmly aligned with them. Mr Mirkazemi remains the company's largest shareholder with a total holding of 9,518,403 shares.
Should you sell shares?
While taking a bit of profit off the table after its stellar share price run could be worth considering, I still believe that Altium is one of the best buy and hold investment options on the local market along with fellow tech stars Appen Ltd (ASX: APX) and Xero Limited (ASX: XRO).
This is because I feel that as a market leader in a fast-growing industry, Altium is in a great position to grow its earnings at a strong rate over the next decade.
In fact, management is targeting 100,000 active subscribers of its flagship product, Altium Designer, by 2025. This compares to approximately 38,000 subscribers at the end of FY 2018.
As well as providing a major boost to its top line, management believes that if it can achieve this it will compel key stakeholders within the manufacturing and supply chain industry to support its agenda to transform electronic design and its realisation. This is likely to put it in an even stronger leadership position.
So, overall, I wouldn't let this share transfer put you off the company and would suggest you focus on its business performance and prospects.
