Massive GVC Share Sell-off Causes Minor Crisis
A couple of directors with London-based operator, GVC, recently decided to sell large numbers of shares in the company, spooking investors and causing the GVC share price to drop by 16 percent.
CEO, Kenny Alexander, sold 75 percent of his shares - that’s over two million shares - for £13.7m. This took place merely three days after the company’s full-year results were publicly announced. GVC revenues had climbed 9 percent in that year, reaching £3.6bn for the year.
Alexander was not the only one selling large amounts of shares, however. GVC chairman, Lee Feldman, also sold a large sum of his shares in the business for £6m. After selling 900,000 shares in the company, he is left with 300,000 shares currently.
Directors still committed to GVC
Alexander still has 1.2 million shares remaining and has reassured investors that he currently has no intentions of leaving the firm anytime soon. He stated that both directors have remained committed to GVC Holdings, are in it for the long haul, and that he is currently working on a three-year plan.
Investors remain uncertain
Although the directors seem confident in their current holdings in the company and their current plans for the future, investors still feel unsettled about the recent events. There has been no clear explanation of the recent sell-off.
Analysts and traders describe this turn of events as unfortunate and concerning for GVC’s share price. Many are not surprised that these decisions have spooked investors.
It is disconcerting to see that merely three months after Alexander promised to increase the GVC share price to £20 in a three-year timeframe, these two directors both decided to unexpectedly cash in on short-term gains following the recent earnings from 2018.
In the long run
Opinions point to the suggestion that they are adjusting their personal bets against upcoming challenges with the FOBT. Directors are hoping that short term drops for GVC will be offset by other outlooks, assuming the company will survive these challenges. This could still potentially affect long term investor confidence in the stock of GVC.