BHP Group Ltd (ASX: BHP) shares are slipping into the red on Thursday.
In afternoon trade, the mining giant's shares are down slightly to $44.66.
As a comparison, Rio Tinto Ltd (ASX: RIO) shares are currently up over 0.5%.
Why are BHP shares underperforming?
The weakness in the BHP share price today could be due to news that the Big Australian's CEO, Mike Henry, has been selling shares on market.
According to a change of director's interest notice, Henry has offloaded a total of 120,892 BHP shares through an on-market trade on 25 August.
BHP's CEO received an average of $42.9516 per share for this parcel, which equates to a total consideration of $5.193 million.
However, it is worth noting that Henry's holding actually increased this week despite the sale.
That's because BHP's leader also received 248,435 shares via its long-term incentive plan and the miner's cash and deferred plan. As a result, Henry's holding has increased from 677,218 to 804,761 BHP shares.
So why the selling?
When you receive shares from long-term incentive plans and similar programs, you have to pay tax on them. The easiest way for executives to deal with this is to sell an appropriate amount of shares to cover this tax payment, as well as the tax they will have to pay on the shares they sell during the process.
BHP advised:
The on-market sale of 120,892 ordinary shares in BHP Group Limited in order to meet expected tax obligations arising from the vesting of share awards described above.
As a result, I wouldn't be concerned by the sale. Henry's interests are clearly still firmly aligned with shareholders.
Should you invest?
The team at Morgans continues to rate BHP as a buy. Its analysts have an add rating and a $51 price target on its shares.
This implies a potential upside of 14% for investors over the next 12 months.
