Pro Medicus Limited (ASX: PME) shares have been pushing higher this week.
This means that since this time last week, the ASX 200 health imaging technology company's shares have risen 3.5%.
That's despite the market selloff and news that insiders have been selling a large number of shares.
Insiders sell $125 million of this ASX 200 stock
Yesterday, Pro Medicus revealed that its co-founders Dr Sam Hupert and Anthony Hall have each sold 1 million shares during the current trading window.
Dr Hupert, who is also the CEO of the ASX 200 healthcare stock, received an average of $62.22 per share. This represents a total consideration of $62.22 million.
Anthony Hall, who is an executive director, received the same price and consideration for his parcel of shares.
The good news is that the two co-founders still have a considerable shareholding leftover. In fact, these sales accounted for less than 4% of their individual holdings.
Furthermore, their remaining shareholdings combined equate to over 50% of Pro Medicus' shares on issue. Clearly, their interests remain firmly aligned with shareholders.
It is a similar story for the ASX 200 stock's chairman, Peter Kempen AM, who earlier this week revealed the sale of 50,000 shares. He has been left with 629,082 shares.
Why are they selling?
No explanation was given for the co-founders' sales. The company merely stated:
The sale, to local institutions, was done at market (0% discount), reflecting strong demand by institutional investors. Dr Hupert and Mr Hall are actively engaged in the company as executives and board members and are committed to its future. They remain the two key stake holders in the company with their combined holding post this recent sale in excess of 50%.
The ASX 200 stock also revealed that "Dr Hupert and Mr Hall re-affirmed that they do not intend to sell any further shares in PME in the foreseeable future."
Pro Medicus' chair did explain the reason for his sale. He advised:
The sale was part of a rebalancing of the superannuation fund's portfolio interests. No further sales by interests associated with Mr. Kempen are contemplated in the foreseeable future.
Should you be concerned?
While insider selling is often something to be concerned about, this doesn't appear to be the case this time.
Given how large their shareholdings remain and how institutional investors were more than happy to snap up shares at market prices, it could be argued that this is a net positive outcome.
