Guess which ASX 200 CEO just sold $3.64 million worth of his company's shares?

We take a look at why the CEO offload his shares.

| More on:
A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.

Image source: Getty Images

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

Key points

  • IPH shares shrug off the news of CEO Blattman selling a portion of his holdings, edging 2.13% higher to $9.60 
  • The company said the sale was to satisfy personal tax obligations 
  • A couple of brokers recently weighed in on the IPH share price, both implying a significant upside over the next 12 months 

The IPH Ltd (ASX: IPH) share price is edging higher during Friday afternoon.

This comes despite the announcement by the intellectual property services company that its CEO has offloaded some of his shares.

At the time of writing, IPH shares are swapping hands at $9.60 apiece, up 2.13%.

IPH CEO sells shares to 'satisfy personal tax obligations'

Investors appear to be unfazed by the company's latest news, sending the IPH share price into positive territory.

According to the release, IPH managing director and CEO, Andrew Blattman sold a parcel of his shares through an on-market trade.

In total, 400,000 IPH shares were disposed on 24 August.

While the average price per share sold isn't listed, we do know that $3.64 million went into Blattman's pockets. This would suggest that each share that was sold was around $9.10 per share.

The company listed the reason for the sale was "to satisfy personal tax obligations arising from the issue of shares under the company's long term incentive plan."

It's worth noting that this is not uncommon, as directors and CEO's alike sell for various reasons over time.

A catalyst for the IPH shares remaining afloat today despite the sell down can be attributed to some recent broker notes.

According to ANZ Share Investing, the team at Macquarie raised its price target by 45% to $11.95 for IPH shares. Based on the current share price, this implies an upside of roughly 25%.

Furthermore, Canaccord Genuity also bumped up its rating by 15% to $11.65 per share.

It seems that both brokers believe that the IPH shares are undervalued from where they trade today.

IPH share price summary

IPH shares have travelled in circles over the last 12 months, registering a slight gain of 3.7%.

Although, when looking at year to date though, its shares are up 9%.

In particular, the past month has been extremely positive for shareholders with its shares 16% higher following the company's full-year results.

Based on today's price, IPH commands a market capitalisation of approximately $2.08 billion, with 218.82 million shares on hand.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended IPH Ltd. The Motley Fool Australia has recommended IPH Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Industrials Shares

a man in hard hat and high visibility vest talks into a walky-talky device in the foreground of a freight train at a railway yard.
Industrials Shares

Are industrials shares overpriced? Here's what Bell Potter thinks

Here’s what the broker is projecting for the largest industrials companies. 

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Industrials Shares

Up 20% this year, does Macquarie rate Downer shares a buy, hold or sell?

Here’s the broker’s latest stance on the stock.

Read more »

Woman on a tablet waiting in for her flight in an airport and looking through a window.
Industrials Shares

How much upside does Macquarie expect for Auckland International Airport shares?

The airport recently lowered its fees for airlines.

Read more »

a happy plumber smiles while repairing bathroom fittings in a home.
Industrials Shares

After crashing 17% last Friday, does Macquarie rate Reece shares a buy?

Should investors buy in the dip?

Read more »

Piggybank with an army helmet and a drone next to it, symbolising a rising DroneShield share price.
Industrials Shares

5 ASX defence shares that have surged 40% to 307% in just one year

Analysts say the defence investment theme should not be ignored.

Read more »

A middle aged man holds a plumbing plunger in one hand and a piece of toilet pipe in the other with an exasperated look on his face.
Industrials Shares

Guess which ASX 200 industrials stock is sinking today on latest trading update

Softening market conditions see investors head for the door.

Read more »

American soldier in military uniform using laptop for drone controlling.
Industrials Shares

Why this soaring ASX defence stock could rise 17%

Bell Potter has good things to say about this growing company.

Read more »

American soldier in military uniform using laptop for drone controlling.
Share Market News

ASX defence shares lift amid NATO Summit decision to turbocharge spending to 5% GDP

The North Atlantic Treaty Organization (NATO) has also signed a 'milestone' agreement with Australia.

Read more »