The WiseTech Global Ltd (ASX: WTC) share price is down 2.5% after the news that its founder had sold more shares.
WiseTech is the provider of CargoWise software which helps logistics companies across the world.
WiseTech found share selldown
WiseTech announced today that WiseTech founder & CEO Richard White and co-founder & executive director Maree Isaacs have sold shares.
Mr White said that the share sales are part of a trading program, which has trading limits to reduce market impact. Mr White said he’s selling down a minor portion of his shareholding to increase liquidity in WiseTech’s shares and increase his diversification.
By the end of this trading program, Mr White expects to have voting control of about 45% of the company.
WiseTech reminded investors that since listing, Mr White had only sold shares once prior to the WiseTech listing. He remains the largest shareholder and is still committed as a long term shareholder.
Between 22 June to 26 June 2020 Mr White sold around 225,000 shares for $5 million. He then sold another 2.45 million shares for $45 million. Between 27 August to 2 September 2020 he sold shares valued at around $10.4 million.
Should investors be worried?
If I were Mr White I’d probably be doing the same thing, so I can’t fault him too much considering he’s still going to own 45% of the business.
It may say something that he chose to sell shares at the recent WiseTech share price of $28.50.
I’m not sure if WiseTech is a buy, it’s valued at over 100 times the estimated earnings for FY21 according to CommSec. There are other ASX growth shares I’d rather buy with a long term outlook today like Pushpay Holdings Ltd (ASX: PPH) and Bubs Australia Ltd (ASX: BUB).
