One of the worst performers on the ASX 200 on Monday has been the HUB24 Ltd (ASX: HUB) share price.
The investment platform company's shares fell as much as 7.5% lower today. In afternoon trade they have recovered slightly but are still trading almost 5% lower at $13.50.
Why did the HUB24 share price crash lower today?
Today's decline appears to be attributable to a change of director's interest notice released this morning which reveals that one of HUB24's directors has been selling shares on-market this month.
According to the notice, non-executive director Ian Litster offloaded 275,000 shares through on-market trades between March 11 and March 14.
Mr Litster, who co-developed and established the HUB24 investment and superannuation platform, received $14.05 per share or a total consideration of almost $3.9 million. No reason was provided for the sale of the shares.
But it is worth noting that despite this sizeable sale, he still has direct and indirect interests totalling almost 3.3 million shares.
Should you be concerned?
Whilst insider selling rarely goes down well with the market and the lack of an explanation for the selling is disappointing, I wouldn't be overly concerned by the sale of these shares.
Given the size of his remaining stake, Mr Litster's interests are still very much aligned with shareholders.
Is this a buying opportunity?
Whilst my preference in the industry remains Bravura Solutions Ltd (ASX: BVS), I still feel that HUB24 is a quality company with a lot of promise.
I'm not alone in this view. A note out of Goldman Sachs earlier this month reveals that its analysts have a buy rating and $14.60 price target on the company's shares.
Although Goldman was slightly disappointed with HUB24's half year result, it remains positive on the company due to its belief that it is well-placed to benefit from a continued trend in inflows across the market towards independent platforms. This is expected to be led by a shift from advisers away from the vertically integrated models of the incumbent wealth managers.
Elsewhere, other shares that have experienced insider selling this month include Credit Corp Group Limited (ASX: CCP), Orora Ltd (ASX: ORA), and Ramsay Health Care Limited (ASX: RHC).
