WiseTech Global share price lower after CEO sells $10m of shares and plans even more sales

The WiseTech Global Ltd (ASX:WTC) share price is under pressure today after its CEO sold $10 million worth of shares and revealed plans to sell more…

The market may be pushing higher today but the same cannot be said for the WiseTech Global Ltd (ASX: WTC) share price.

At the time of writing the logistics solutions company's shares are down 2% to $28.75.

Why is the WiseTech Global shares price dropping lower?

Investors have been selling WiseTech Global's shares on Thursday after it revealed that its founder and co-founder have been selling down their holdings.

The company's Founder and Chief Executive Officer, Richard White, has sold a total of 349,504 shares through a series of on-market trades between 27 August and 2 September 2020.

Mr White received an average of approximately ~$28.49 per share or a total consideration of $9,959,109.

Despite this sizeable sale, Mr White still has an interest of 139,699,669 WiseTech Global shares.

Also selling shares was the company's Co-Founder and Executive Director, Maree Isaacs. She sold a total of 15,472 shares through a series of trades across the same days. Ms Isaacs received an average of $28.50 per share or a total consideration of ~$441,000.

This leaves the executive director with an interest of 11,408,693 shares.

Share sales to continue.

According to the release, these are the first in a series of planned share sales by the company's CEO over the next four months.

The release explains that these share sales have been undertaken as part of a trading program which will continue until 31 December 2020, subject to no material, non-public information arising during this period.

Mr White intends to sell down a minor portion of his shareholding to facilitate liquidity in the company's shares and enable some diversification of his assets.

He said: "I am excited about WiseTech's future growth opportunities and continue to be as committed and driven as ever, on achieving our global growth ambitions. We are gaining momentum in driving revenue growth, with four new global customers signed up in the first seven months of calendar 2020 and a strong pipeline of further global deals."

"As we continue to execute on our market penetration strategy, it is pleasing to see interest from new, long-term investors wanting to be part of our growth journey. This is why it is important to enhance the liquidity of our stock through an orderly process and in a way that will benefit all of our shareholders," he concluded.

Also experiencing heavy insider selling today have been Bigtincan Holdings Ltd (ASX: BTH) and Xero Limited (ASX: XRO). Unsurprisingly, their respective shares are dropping lower along with WiseTech Global.

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 WiseTech Global and Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends BIGTINCAN FPO. The Motley Fool Australia owns shares of and has recommended BIGTINCAN FPO. 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 Scott Phillips.

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