The HUB24 Ltd (ASX: HUB) share price has been among the worst performers on the ASX 200 on Monday.
At one stage today, the investment platform provider's shares were down as much as 8% to $29.16.
The HUB24 share price has recovered a touch this afternoon but remains down 6% to $29.69 at the time of writing.
Why is the HUB24 share price under pressure today?
The decline in the HUB24 share price on Monday appears to be a combination of profit taking after some strong recent gains and news that an insider has been selling shares.
In respect to the latter, a change of director's interest notice reveals that its Chairman, Bruce Higgins, has offloaded a large number of shares on-market since the release of its full year results.
The notice, that was released after the market close on Friday, explains that Mr Higgins sold a total of 269,700 shares on 25 August.
This comprises 49,700 indirectly owned shares that were sold at an average of $30.47 per share and 220,000 directly owned shares sold for $30.00 per share. Combined, this equates to a total consideration of just over $8.1 million.
In addition to this, the company's Managing Director and CEO, Andrew Alcock, sold shares on-market late last week.
However, while Mr Alcock sold 175,000 shares at an average of $30.00 per share, he also exercised some options. The CEO picked up 106,464 shares at a bargain price of $4.46 per share and 78,077 shares at an almost as attractive discount of $7.09 per share. This compares to the current HUB24 share price of $29.69.
He advised that the proceeds of the sale were "to be used to exercise options, fund taxation liabilities and personal liquidity."
Is this a buying opportunity?
One broker that might see the weakness in HUB24 share price as a buying opportunity is Morgans. Last week it upgraded the company's shares to an add rating with an improved price target of $31.65.
Based on the current HUB24 share price, this implies potential upside of 6.5% over the next 12 months.
