Flight Centre shares rise despite co-founder sales

Man presses green buy button and red sell button on a graph.

Man presses green buy button and red sell button on a graph.

The Flight Centre Travel Group Ltd (ASX: FLT) share price is edging higher this morning.

That’s despite news that a couple of the company’s founders have been selling down their holdings.

At the time of writing, the travel agent’s shares are up 0.5% to $21.50.

Flight Centre share price higher despite founder sales

According to the release, Flight Centre co-founders Geoff Harris and Bill James have been selling shares on-market recently.

In respect to the former, Geoff Harris’ Gehar entity has been selling hundreds of thousands of Flight Centre shares since the beginning of March. This includes the sale of 200,000 shares on 28 April for a total consideration of approximately $3.9 million.

It has been a similar story for James Management Services, owned by Bill James. The co-founder has been selling approximately 25,000 shares almost every week since early in February, receiving in the region of $460,000 to $490,000 with each sale.

On a positive note, the company confirmed that fellow co-founder and current CEO, Geoff Turner, has not been selling shares.

The company also highlights that the two selling co-founders have not been involved with the “company’s day-to-day activities since resigning from the company’s Board of Directors more than 20 years ago.” In other words, this shouldn’t be interpreted as an insider selling event.

Should you be buying or selling shares?

Analysts at Morgans are unlikely to agree with the two co-founders’ decision to sell Flight Centre shares.

Earlier this month, the broker upgraded the company’s shares to an add rating with a $26.25 price target. This suggests potential upside of 22% for investors from current levels. It is also a sizeable premium to what Flight Centre’s co-founders have received for their shares.

The post Flight Centre shares rise despite co-founder sales appeared first on The Motley Fool Australia.

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More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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