Major shareholders of these companies sold massive blocks of their shares this week

Nick Sundich Nick Sundich, December 14, 2022

Markets do not like it when major shareholders sell down their stakes, whether it is a founder, director or a fund manager. It is not uncommon for shares to fall more than 10% when that happens. Although that wasn’t the case for Endeavour (ASX:EDV) and Technology One (ASX:TNE) this morning, the disposals are questionable. 

 

No time to do stock research, but you still want to invest?
 
Stocks Down Under Concierge gives you timely BUY and SELL alerts on ASX-listed stocks!

 

GET A 3-MONTH FREE TRIAL TO CONCIERGE TODAY

 

 
The founder sells, but Technology One’s other major shareholders stick around

Adrian Di Marco, the founder of Technology One (ASX:TNE) and a major shareholder, sold over $40m worth of shares this week. The news was first revealed in the AFR’s Street Talk column and confirmed via a ceasing to be substantial shareholder notice.

No explanation was given to the market for the sale. However, we observe that he had stepped down as Chairman of the company earlier this year.

Furthermore, having founded the company in 1987 and having been there ever since, you could argue he was entitled to sell. He still owns over 14m in shares, but is no longer a major shareholder, having fallen below the 5% threshold. Technology One shares actually rose this morning. Maybe because the market is relieved part of the overhang is now gone.

 

Technology One (ASX:TNE) share price chart (Graph: TradingView)

 

Woolworths sells some of its Endeavour shares

The prominent major shareholder of Endeavour, Woolworths (ASX:WOW), decided to sell some of its shares – a stake of 5.5% in the company. The deal has not been completed, but WOW will retain a 9.1% interest once this occurs.

Why is a major shareholder of the calibre of Woolworths selling though? There is speculation that it is trying to buy PETstock for $600m, as pet ownership continues to increase.

The sale of Endeavour shares (which would be $635.3m at the reported $6.46 price) would suggest a potential deal is near. Unlike Technology One, Endeavour’s shares fell quite a bit this morning.

In our view, you could understand a founder seeking to reap rewards after more than 3 decades of hard work. But a major shareholder selling a company just to buy another? That draws a lot less sympathy, at least from us. 

 

Endeavour (ASX:EDV) share price chart (Graph: TradingView)

 

 

No time to do stock research, but you still want to invest?
 
Stocks Down Under Concierge gives you timely BUY and SELL alerts on ASX-listed stocks!

 

GET A 3-MONTH FREE TRIAL TO CONCIERGE TODAY

 

No credit card needed and the trial expires automatically.

 

Blog Categories

Get Our Top 5 ASX Stocks for FY25

Recent Posts

Trump vs. Jerome Powell

Trump vs. Jerome Powell: What Happens to the Market If Powell Is Fired?

The relationship between President Donald Trump and Federal Reserve Chair Jerome Powell has often been tumultuous, particularly around decisions regarding…

Telix Pharmaceuticals on the Nasdaq

Telix Pharmaceuticals (ASX:TLX): It’s made ~A$1.7bn in revenue from Illucix, but here’s why the best is yet to come!

What would you have thought if you were told 5 years ago you would see Telix Pharmaceuticals as a successful…

anti woke ETFs

Anti Woke ETFs: Do they practice what they preach and have they outperformed since Trump’s return to power?

Have you ever heard of so-called ‘Anti Woke ETFs’? If you’re sick of companies that are big on ESG, this…