BrainChip (ASX:BRN) share price rises despite CEO selling 9m shares

It has been a decent start to the week for the BrainChip share price…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The BrainChip Holdings Ltd (ASX: BRN) share price is pushing higher on Monday morning.

At the time of writing, the artificial intelligence (AI) technology company's shares are up 3% to 49 cents.

asx share price rising on deal represented by hand shake

Image source: Getty Images

Why is the BrainChip share price on the move?

Investors are bidding the BrainChip share price higher today despite the company revealing that its Founder and CEO, Peter van der Made, has been offloading shares again.

According to the release, Mr van der Made has followed up his sale of 5,498,000 shares in June and 1,706,685 shares two weeks ago with a further sale of 8,993,315 shares.

Based on the BrainChip share price at Friday's close, these shares were valued at just over $4.3 million.

Though, potentially due to concerns that the BrainChip share price could tumble on the news, the buyer and seller have agreed that the consideration will be determined at a later date. This will be based on a volume weighted average price.

Why is the founder selling?

Given how some investors have big concerns over the valuation of the BrainChip share price and the viability of its technology, having the founder sell a large number of shares isn't overly confidence-boosting for shareholders.

However, Mr Van der Made remains positive on the company's future and notes that he still retains a significant holding.

He commented: "I remain BrainChip's largest shareholder, and I have complete confidence in our technology, our company, the management and board. Overall, I have sold a relatively small parcel of shares and retain over 160 million shares in the Company, which represents just over 9% of the total shares on issue. Like all shareholders, I want to see my shareholding appreciate over time, and I am very confident it will. I want to assure you that I am fully committed to BrainChip and I have full confidence and faith in the success of our products, our strategy and out future."

These comments appear to have been enough to stop the BrainChip share price from falling today.

Though, it is worth noting that despite today's gain, the BrainChip share price is down 26% over the last 12 months.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

An old-fashioned panel of judges each holding a card with the number 10
Share Gainers

Here are the top 10 ASX 200 shares today

ASX shares had a near miss this Tuesday.

Read more »

A graphic showing a businessman running up a white upwards rising arrow symbolising the soaring Magellan share price today
Share Gainers

How is this $1.2 billion ASX All Ords share rocketing 17% in Tuesday's sinking market?

The ASX All Ords share is surging in Tuesday’s slumping market. But why?

Read more »

Multiracial happy young people stacking hands outside - University students hugging in college campus - Youth community concept with guys and girls standing together supporting each other.
Share Gainers

Why Clinuvel, Elevra Lithium, Regis Resources, and SCEE shares are racing higher today

These shares are having a good session on Tuesday. But why?

Read more »

Two friends giving each other a high five at the top pf a hill.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a euphoric return to trading for ASX shares.

Read more »

Three trophies in declining sizes with a red curtain backdrop.
Share Gainers

3 ASX 200 stocks leaping higher this week on big announcements

Investors sent these three ASX 200 stocks surging in this King's Birthday shortened trading week. But why?

Read more »

Two happy and excited friends in euphoria holding a smartphone, after winning in a bet.
Share Gainers

Why Brazilian Rare Earths, Evolution Mining, Magellan, and Qantas shares are racing higher today

These shares are ending the week on a high. What's going on?

Read more »

A young smiling couple out hiking enjoy a view from the top of the mountains.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX 200 had a wild but negative session this Thursday.

Read more »

Man looking happy and excited as he looks at his mobile phone.
Share Gainers

Why Lendlease, Meteoric Resources, Super Retail, and Woodside shares are rising today

These shares are catching the eye of investors on Thursday. What's going on?

Read more »