Shares in the embattled Star Entertainment Group Ltd (ASX: SGR) extended losses on Monday and finished the session nearly 7% in the red.
The stock now fetches 21 cents apiece, bringing losses to more than 20% over the past week and nearly 60% this year to date.
Investors of all shapes and sizes have sold Star shares this year, and the latest wave comes from large holder Perpetual Ltd (ASX: PPT).
According to mandatory ASX filings on Monday, the equity manager unloaded $26 million worth of shares in the casino group.
Where this leaves Star Entertainment shares is anyone's guess. Here's a closer look.
Perpetual sells its Star Entertainment shares?
Perpetual's decision to sell Star shares comes as the company faces a sizeable set of headwinds, not in the least related to the now infamous Bell Report.
The company finally digested the regulatory pressures in September after a one-month trading suspension. Upon resuming, its stock price lost nearly half its value.
Star received a $200 million lifeline from creditors shortly after it resumed trading on the ASX. But this wasn't enough to stem the tide. Investors continued to sell the stock.
Now, Perpetual has added itself to the list of sell orders on the ledger. According to Monday's filings, it unloaded $26 million of Star shares.
The transaction involved 129.7 million Star Entertainment shares sold at 20 cents each, representing about 4.5% of the company.
Broker Barrenjoey handled the trade, according to The Australian Financial Review, noting various hedge funds took the other side of the trade.
However, even with Perpetual's exit, Star retains some heavyweight shareholders. Billionaire Bruce Mathieson, who holds close to a 10% stake, remains on the share register.
Perpetual's move to exit its Star position comes alongside the Queensland Government's inquiry into its Brisbane Casino.
The report examined potential criminal links at the Casino, but there is no set release date.
Even still, the company faces an even longer litany of headwinds related to the Bell Report, mentioned earlier.
Star's new management has responded to the New South Wales Casino Commission (NICC) about the report. It says there is a way forward.
In that vein, many might question whether the continued sales from large players like Perpetual are rational or not. Mind you, Perpetual is going through its own structural issues.
But as economist John Keynes famously said: "The market can stay irrational longer than you can stay solvent". Time will tell what happens to Star Entertainment shares from here.
Foolish takeout
Perpetual has sold down its position in the company with a large bloc trade completed on Monday. This adds to the list of large holders cutting their exposure.
Alas, the future of Star Entertainment shares remains uncertain. The company is proactively trying to dig itself out of the hole it's in and has several steps in place to do so.
But the most important step is execution, which it is all about here.