Kogan.com Ltd (ASX:KGN) shares plunge lower on insider share sales

The Kogan.com Ltd (ASX:KGN) share price has taken a tumble after it confirmed the sale of shares from Ruslan Kogan and a fellow director…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It has been a disappointing start to the day for the Kogan.com Ltd (ASX: KGN) share price.

In early trade the ecommerce company's shares are down a sizeable 7.5% to $6.50. At one stage Kogan's shares were as much as 10% lower at $6.33.

Why are its shares plunging lower?

This morning Kogan conformed media reports that founder Ruslan Kogan and chief financial officer David Shafer have sold another block of shares.

According to the release, a total of 6.25 million shares were sold for a consideration of approximately $40 million, which values them at around $6.40 each.

This sale completes the current intention to trade by the founding directors, with both committing to not selling any further shares before the release of its half year results next year.

Kogan's chairman, Greg Ridder, advised that there was substantial interest from new and existing shareowners, which he feels is a further step in the maturity of the company.

He stated that: "It is great to see our work at Kogan.com continue to attract significant interest from both domestic and international shareholders who value our business strategy and execution. All shareholders will have the benefit of added depth and liquidity afforded by this transaction while maintaining our founders, Ruslan Kogan and David Shafer, interests in the Company at proportions amongst the highest on the ASX."

Should you buy the dip?

While I prefer to see directors buying shares than selling them, I feel Kogan is a very different situation and its directors already have a significant amount of wealth tied up in the company's shares. Thus it is reasonable for them to want to offload shares now and then.

I think Kogan's shares are in the buy zone and this pullback has created a buying opportunity. Though, one thing that is worth noting is that management elected to not provide any guidance with its results in August. Instead, it will provide a trading update in November at its AGM.

Investors with a lower tolerance for risk might want to wait for that update before investing. In the meantime, fellow retailers Accent Group Ltd (ASX: AX1) and Super Retail Group Ltd (ASX: SUL) may be more suitable options.

Should you invest $1,000 in Agl Energy Limited right now?

Before you buy Agl Energy Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Agl Energy Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 3 April 2025

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Super Retail Group Limited. The Motley Fool Australia has recommended Kogan.com ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Fallers

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why DroneShield, Generation Development, Oneview, and PWR shares are falling today

These shares are ending the week in the red. But why?

Read more »

plummeting gold share price
Gold

Why are ASX 200 gold stocks getting crushed today?

ASX 200 gold stocks have lost their shine on Wednesday. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Aurelia Metals, Cettire, Northern Star, and Woolworths shares are falling

These shares are having a tough time despite the market roaring higher.

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Block, Deep Yellow, Perenti, and Zip shares are dropping today

These shares are starting the week in the red. But why?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Imricor, Nanosonics, Perpetual, and Tourism Holdings shares are sinking today

These shares are having a tough finish to the week. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Bellevue Gold, Collins Foods, Hub24, and Zip shares dropped today

These shares were out of form on Tuesday. But why?

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Ansell, EBR Systems, IDP Education, and Macquarie shares are falling today

These shares are starting the week in the red. But why?

Read more »

A woman with a sad face looks to be receiving bad news on her phone as she holds it in her hands and looks down at it.
Share Fallers

Why Flight Centre, Monash IVF, NextDC, and Woodside shares are sinking today

These shares are having a tough finish to the week. Let's see what is going on.

Read more »