CSL Limited (ASX: CSL) shares have been sluggish of late. Very sluggish.
The stock closed yesterday at $267.95 per share.
Over the past five trading days, CSL has dropped 0.12%. Over the past month, the biotech has fallen 0.21%. The market darling is just "hanging around" at its current price point.
Not inspiring, right?
So, it's interesting to see two directors of the ASX 200 giant selling down personal stakes over the past week. And not just minor stakes, either. We're talking a combined $10 million worth of CSL shares.
And why would they sell now?
CSL shares have traded across a wide price range over the past 12 months — from a 52-week low of $255.87 to a 52-week high of $314.28, so why would they sell at the lower end of this price scale?
Let's investigate.
Image source: Getty Images
Two directors hit the sell button on CSL shares
Helpfully, CSL has issued a statement explaining exactly why these two directors have sold some stock.
Company chair Dr Brian McNamee AO, has sold 21,000 shares.
According to the company:
Dr McNamee has sold 21,000 shares. Sale proceeds will be used for philanthropic purposes and to meet personal and taxation obligations.
Dr McNamee will continue to own 125,884 shares in CSL Limited following this transaction, and remains one of CSL's largest private shareholders.
Non-executive director Professor Andrew Cuthbertson has sold 20,000 CSL shares "for philanthropic purposes and as part of a reweighting of his personal investment portfolio".
The company adds:
Professor Cuthbertson will also continue to own a significant interest in the Company's securities, holding 70,391 shares following this transaction.
Should you buy?
As my colleague James reported yesterday, top broker Citi issued a recent note on CSL shares.
It maintained its buy rating but has reduced its official price target from $340 per share to $325 per share.
This implies a potential upside of more than 20% over the next 12 months.
The broker explains:
We adjust our FY24-25e NPATA per share (Core EPS) by 0%/-3%.
Our new TP of $325 (from $340) implies CSL should trade on an FY26 PE of ~26x, in-line with the 10-year average. Maintain Buy.
