The last six months have been kind to the Accent Group Ltd (ASX: AX1) share price. Rising 24%, shares in the ASX 300 footwear retailer have outpaced the benchmark index by 17%. But it looks like the sudden green sprint has cued a major sell-down by one of the company's co-founders.
News of the insider sale is hot off the press this morning. Yet, the Australian and New Zealand shoe seller's shares marched higher in early trade. However, the Accent share price is now fetching a $2.34 price tag, slipping 0.4% from yesterday.
Who is selling for a chunk of change?
The second-largest shareholder of Accent has bumped down the ranks today after converting 15 million shares into cash.
Accent co-founder Craig Thompson's bank balance would look plump following the sale, at a whopping $34.5 million worth. Thompson previously held 30.9 million shares in the ASX 300 company, which would be worth a grand total of $71 million at the current share price.
Post-sale, Thompson retains a stake worth approximately $15.9 million. Accent CEO Daniel Agostinelli now holds a larger portion of the company, with 20.1 million shares, equivalent to 3.6%.
However, the largest shareholder remains the UK-based Fraser Group, with its 82.5 million shares (14.6% stake). Fraser Group is predominantly a sports apparel retailer best known for its Everlast and Slazenger brands.
Thompson's sale follows Accent's weak financial result in August. As previously reported, the Athletes Foot, Platypus, and Skeckers operator delivered a net profit of $59.5 million for FY24, 33% below the previous year's figure.
With less after-tax earnings, the company made the decision to chop its dividend down by 26%.
Are others selling this ASX 300 share?
It can be worrying when those closest to the company take some chips off the table. One insider, perhaps no big deal… two insiders, you have my attention… three insiders, something might be happening under the hood.
Thompson isn't the only person to sell Accent shares recently. In August, major shareholder and retail icon Brett Blundy made the decision to exit Accent completely, taking home roughly $165 million in the process.
Likewise, Agostinelli cashed in about $3.3 million worth in September.
Still, not everyone is abandoning the ASX 300 share. Last month, analysts at Morgans named Accent a buy with a price target of $2.40. The broker believes an easing in cost inflation over the coming years will boost the company's profits.
Shares in the retailer currently trade on a forward price-to-earnings (P/E) ratio of 17 times forecast profits. For context, a group of ASX-listed retailing peers carries an average forward P/E multiple of 26 times.
