Propel Funeral share price falls following $6m co-founder share sale

The company's co-founders scooped up some extra cash following their share sale…

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Key points
  • Propel Funeral shares edge 2.53% lower to $4.63 
  • The company's co-founders sold 1.25 million Propel Funeral shares last week on 6 April 
  • This is the first time the co-founder's have offloaded their shares since the company's IPO in November 2017 

The Propel Funeral Partners Ltd (ASX: PFP) share price is in reverse despite the S&P/ASX 200 Index(ASX: XJO) lifting today.

At the time of writing, the funeral operator's shares are swapping hands for $4.63, down 2.53%.

In contrast, the benchmark index is trading at 7,521.5 points, up 0.58%.

Man going down a red arrow, symbolising a sliding share price.

Image source: Getty Images

Propel Funeral shares retreat

Investors appear uneased by the company's latest announcement, sending the Propel Funeral share price into negative territory.

According to the release, two of Propel Funeral's co-founders sold a parcel of their shares on 6 April.

In total, 1.25 million Propel Funeral shares were offloaded in an on-market trade for an average price of $4.80 per share.

Propel Funeral managing director, Albin Kurti disposed of 729,778 shares, with today's net holding of around 10.16 million shares.

In addition, Propel Funeral executive director, Fraser Henderson offloaded 520,522 shares, with his holding roughly 7.24 million shares.

Management noted that the sale is the first between the pair since the company's initial public offering (IPO) 4.5 years ago.

Both co-founders stated that the proceeds from the above selldown will be utilised for investment diversification and taxation obligations.

The transaction represents roughly 1.1% of Propel Funeral's share registry, and 6.7% of the total number of shares held by the co-founders (prior to the selldown).

Nonetheless, both Mr Kurti and Mr Henderson remain Propel Funeral's two largest non-institutional shareholders. Combined, they own about 14.8% of the company's entire issued capital.

In addition, the co-founders noted that they have no plans to sell any more shares prior to the company's FY22 full year results.

Propel Funeral share price snapshot

Despite today's slight drop, the Propel Funeral share price is up 49% over the last 12 months.

Although the same can't be said when looking at year to date, with the company's shares up 3%.

Based on today's price, Propel Funeral commands a market capitalisation of approximately $541.14 million, with 117.89 million shares on hand.

Motley Fool contributor Aaron Teboneras 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 recommended Propel Funeral Partners Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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