The Jumbo Interactive Ltd (ASX: JIN) share price is in reverse despite the S&P/ASX 200 Index (ASX: XJO) lifting today.
At the time of writing, the lottery ticket seller’s shares are swapping hands for $18.77, down 0.79%.
In contrast, the benchmark index is trading at 7,524.9 points, up 0.42%.
Jumbo shares retreat
Investors appear uneased by the company’s latest announcement, sending the Jumbo share price into negative territory.
According to the release, Jumbo CEO and founder, Mike Veverka sold $12.7 million of his Jumbo shares between 28 March and 1 April.
In total, 688,455 Jumbo shares were offloaded in an on-market trade for an average price of $18.42 per share.
Whilst this isn’t uncommon as CEOs sell for various reasons, the company noted the sale was driven by “diversification purposes”.
The transaction represents roughly 1.1% of Jumbo’s share registry and reduced Mr Veverka’s entire holding to around 8.85 million shares. This equates to 14.1% of the total issued capital.
Furthermore, the company noted that Mr Veverka intends to remain a substantial and long-term shareholder of Jumbo.
In addition, the CEO noted he has no plans to sell any more of his Jumbo shares within the next 12 months.
Mr Veverka commented:
I remain fully committed to leading Jumbo through the exciting future ahead.
The global lottery industry continues to grow, underpinned by the ongoing structural shift to digital and Jumbo is uniquely placed to help our lottery partners and clients through this change by providing our best-in-class lottery software and our continuously improving player experience.
It’s worth noting that Mr Veverka spent almost $100,000 on 23 February, buying 5,680 Jumbo shares through an on-market trade. This was a day after the company’s shares slumped to $17.04 following its 52-week high of $19.94 on 9 February.
Jumbo share price snapshot
Despite today’s slight drop, the Jumbo share price is up 43% over the last 12 months.
Although the same can’t be said when looking at year to date, with the company’s shares down 2%.
Based on today’s price, Jumbo commands a market capitalisation of approximately $1.18 billion, with about 62.76 million shares on hand.
The post Jumbo (ASX:JIN) share price edges lower following $12.7m founder share sale appeared first on The Motley Fool Australia.
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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. owns and has recommended Jumbo Interactive Limited. The Motley Fool Australia has recommended Jumbo Interactive Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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