The Breville Group Ltd (ASX: BRG) share price is trading lower on Friday morning.
In early trade the appliance manufacturer's shares are down 1.5% to $26.18.
Why is the Breville share price dropping?
This morning Breville announced that its CEO, Jim Clayton, has sold a large number of shares through an on-market trade.
According to the release, Mr Clayton offloaded a total of 328,338 Breville shares. No sale price has been given, but based on the Breville share price at the close of play on Thursday ($26.53), this stake was worth ~$8.7 million.
Why was the CEO selling share?
Breville has explained that its CEO sold the shares to facilitate the purchase of a residence in Australia.
In addition to this, funds will be used to satisfy personal tax obligations in relation to the vesting of performance and fixed deferred remuneration rights.
The company notes that Mr Clayton retains a significant interest in Breville after this sale. He is left with an interest of 180,393 shares and 427,650 performance and fixed deferred remuneration rights.
This is well in excess of Breville's guideline of two times base salary included in the Breville 'Target Shareholding Guideline for KMPs'.
It added that the sale of shares was approved by the company's Chairman and was conducted in accordance with its Share Trading Policy.
Where next for the Breville share price?
While material insider selling like this rarely goes down well with the market, the CEO cannot be accused of selling at the top. The Breville share price is currently trading 19% below its 52-week high and has been tipped by a number of brokers to go higher.
One of those is Morgans. Last week its analysts put an add rating and $33.90 price target on its shares. Based on the current Breville share price, this price target implies potential upside of almost 28% over the next 12 months.
Morgans believes Breville is well-placed for growth thanks to a number of tailwinds and its investments in growth projects.
