Guess which ASX 200 CEO just sold $4 million worth of company shares

The company's CEO has cashed-in following a market-beating performance.

Mitchell Lawler

Mitchell stumbled upon the concept of investing when in high school, devotedly urging his parents to put some money into a handful of technology companies with increasingly popular products among his demographic – many of which have gone on to great success. It wouldn’t be until 2017, some five years later, that Mitchell became an investor of his own money. Having studied and worked as a mechanical engineer in the building services industry, Mitchell takes a methodical and analytical approach to evaluating businesses. Rather than relying purely on numbers, Mitchell drills beyond a company’s metaphorical mantle to unearth obscure patterns or competitive advantages that would go otherwise unnoticed. His expertise resides within areas such as software, consumer goods, and building services equipment. However, his quest to find quality companies that set the industry standard and flex some degree of an impenetrable position has no limits – small cap to mega cap, cosmetics to healthcare – if it’s an exceptional business it’s on his radar.

Published July 31, 2024 3:53 pm AEST

Today is turning out to be a sensational day for most companies inside the S&P/ASX 200 Index (ASX: XJO). As the closing bell approaches, the benchmark index is up 1.2% to 8,049 points as investors pile in on comforting inflation data.

At the time of writing, 173 companies from the top 200 ASX shares are touting higher share prices than yesterday. The rally is a double-edged sword for one CEO after liquidating a meaningful portion of ownership in the $34 billion market capitalisation company he helms.

After surging 32% this year, the CEO is probably still relatively happy with the proceeds from selling Aristocrat Leisure Limited (ASX: ALL) shares.

A woman sits at her computer with her hand to her mouth and a contemplative smile on her face as she reads about the performance of Allkem shares on her computer — Image source: Getty Images

Cash-out after run-up

According to a change of director's interest notice, Aristocrat Leisure CEO Trevor Croker began hitting sell on 25 July.

Before selling, Croker held 684,374 shares in the gaming giant, which would be worth approximately $36.9 million at today's share price. However, as the notice shows, the CEO elected to sell 27,458 shares per day on 25 July, 26 July, and 29 July.

In total, Aristocrat Leisure's CEO turned $4,357,955 worth of shares into cash. No reason for the sale was supplied.

Croker's decision to take some chips off the table contradicts a recent broker rating. As previously reported, analysts at Citi tagged Aristocrat Leisure with a buy rating on 28 July, citing a positive view on the company's 'Aristocrat Interactive' division.

Citi backed the rating with a price target of $57.00, which indicates a further 5.6% upside in the ASX 200 stock from the current share price. Similarly, analysts at UBS hold a $56.00 price target on Aristocrat Leisure shares.

Nevertheless, Croker still holds a $32.5 million stake in the business following the sale.

Is Aristocrat a top-performing ASX 200 stock?

With its value rising 37% over the past 12 months, you'd think Aristocrat Leisure would be in the top leagues of performance. After all, its one-year return exceeds the benchmark by a whopping 28%.

Surprisingly, Aristocrat isn't even in the top 20 best-performing ASX 200 shares over the last year. You'd need to scroll all the way down to the thirty-eighth place to find Aristocrat Leisure, despite its market-beating performance.

It's worth mentioning that the jump in Aristocrat shares only really occurred after 10 May of this year, coinciding with the release of its first-half results for FY24. The company posted a 16.8% jump in net profit after tax (NPAT) and announced a further $350 million of on-market share buybacks.

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