The Corporate Travel Management Ltd (ASX: CTD) share price has been a poor performer on Wednesday.
In fact, in afternoon trade, the corporate travel booker’s shares are the worst performers on the S&P/ASX 200 Index (ASX: XJO).
At the time of writing, the company’s shares are down 6% to $20.90.
Why are Corporate Travel Management’s shares sinking today?
The Corporate Travel Management share price has come under pressure today after it announced that its Chief Executive Officer, Jamie Pherous, has offloaded a large number of shares.
According to the release, Mr Pherous disposed of 1.5 million of the company’s shares via an on-market trade on Tuesday.
The CEO was able to command an average of $21.00 per share sold, which equates to a total consideration of $31.5 million.
While no explanation was given for the sale, the company notes that Mr Pherous remains the company’s largest shareholder even after accounting for this transaction. He is left with a total of 19.24 million shares, which represents a 14.1% stake in the company.
Where next for the company’s shares?
According to recent notes out of several brokers, the Corporate Travel Management share price could be close to peaking.
For example, Credit Suisse has an outperform rating and $22.00 price target, Ord Minnett has a buy rating and $21.90 price target, and Morgans has an add rating and price target of $21.75.
Based on Credit Suisse’s price target of $22.00, there is potential upside of 5% for Corporate Travel Management’s shares over the next 12 months.
What about other travel shares?
Another travel share that was given a buy rating today is Webjet Limited (ASX: WEB). As I mentioned here earlier, Goldman Sachs has initiated coverage on the online travel agent with a buy rating and $7.36 price target.
Based on the latest Webjet share price, this price target implies potential upside of 19% for its shares over the next 12 months. Food for thought for investors.
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More reading
- ASX 200 down 0.6%: Telstra upgraded, Webjet rated as a buy, Westpac update
- These were the best performing ASX 200 shares last week
- Why the Corporate Travel Management (ASX:CTD) share price just hit a 52-week high
- ASX 200 unmoved, Flight Centre soars, Afterpay keeps falling
- ASX 200 rises, Afterpay sinks, Vocus jumps
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
The post Corporate Travel Management (ASX:CTD) shares sink after CEO’s $31.5m share sale appeared first on The Motley Fool Australia.
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