2 ASX 300 directors who each sold more than $3 million in company shares this week

Should investors be worried about these selldowns

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The ASX market pays attention to share investment moves conducted by company directors. In this article, I'm going to cover the large sales recently made by management of two S&P/ASX 300 Index (ASX: XKO) shares.

There are a number of different reasons why someone may need to sell some of their shares. Buying a house or paying a large tax bill are two examples of valid reasons.

Let's look at what's happened with these two ASX 300 shares this week.

Aussie Broadband Ltd (ASX: ABB)

Phillip Britt is the co-founder and managing director of the ASX telco share Aussie Broadband.

On Tuesday, the company announced that Britt had sold 1 million Aussie Broadband shares for $3.48 each. This puts his total gross proceeds at around $3.5 million.

The ASX 300 share also announced that the managing director intends to exercise 698,228 options, which will be held for at least 12 months. It was stated that the sale proceeds would be used to fund the exercise of those options and for "personal reasons".

Aussie Broadband advised that the net effect of the share sale and exercise of those options, once completed, would result in a 301,772 reduction in shares held.

After those transactions, Britt will still own 15.45 million Aussie Broadband shares and remain a substantial shareholder, owning 6.5% of the ASX 300 share.

At the current Aussie Broadband share price, those 15.45 million shares would equate to around $60 million in value, which is still a very large investment.

Evolution Mining Ltd (ASX: EVN)

This ASX gold mining share has substantial operations in Australia. Jacob Klein is a central figure of Evolution, being the ASX 300 share's executive chair.

Yesterday, the company announced that Klein had sold 1.25 million shares on the market for a total of around $4.5 million. However, it must also be noted that 237,702 Evolution Mining shares were issued after the vesting of performance rights, which were awarded in the 2021 financial year.

However, it did lead to a net reduction of the amount of shares owned by around 1 million.

After these transactions, Klein still owns 15 million shares, which translates to a value of around $56 million. In addition, he has around 2 million performance rights. Despite the recent large share sale, he still has a significant amount of money invested in the business.

Motley Fool contributor Tristan Harrison 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 Aussie Broadband. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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