HUB24 Ltd (ASX:HUB) director Ian Litster has this morning disclosed that he has sold 275,000 shares in the company at an average price of $14.05.
The trades were executed on-market and amounted to a value of $3.86 million.
Litster, through direct and indirect holdings still holds 3.28 million shares in HUB24, which offers an investment and superannuation platform to the financial services industry.
Volatile trading over recent days
HUB shares reached a 2019 high of $14.93 last Friday before closing at $14.19.
Interestingly, shares opened 3.5% lower today at $13.70 and reached a low of $13.165 in the first minute of trading, down over 7%.
The soft open was likely driven by traders jumping on the large share sale by Litster but buyers quickly stepped in to support the price.
Director transactions aren't always black and white, in that director share purchases are bullish and director share sales are bearish.
While there are a lot of examples that show large director sales as an inflexion point for stock valuations, directors will usually need to sell their stock at some point.
Fellow board members recently buying shares
Although Litster's sale today is a large one, he still holds the majority of his position, and his fellow board members were buying the stock in late February 2019.
Chairman Bruce Higgins purchased 10,000 shares and director Tony McDonald purchased 4,230 shares.
At 12.32pm, HUB24 shares are down 5.5% to $13.41.