The share price of investment and superannuation company Hub24 Ltd [ASX:HUB] has had a bit of a stumble today, on the back of an announcement released on the ASX website this morning. The announcement indicated a substantial shareholder has sold their part in the company.
At time of writing, HUB shares are trading at $11.26 apiece, a 3.72% drop from yesterday’s price.
Reasons for substantial holding change unknown
According to the announcement, a substantial holder by the name of FMR LLC, otherwise known as Fidelity Investments — a privately owned investment manager based in Boston — sold a grand total of 3,005,279 HUB shares, ceasing their holdings in the company.
This has presumably caused a degree of panic amongst existing shareholders, seeing as FMR had a pretty sizable influence on the company. Their shares represented 4.82% of the company’s total voting power.
The reason for FMR’s cessation is presently unknown. It could be the unknown, which is likely scaring shareholders into also selling their shares (which could have resulted in today’s drop).
What’s next for Hub24’s share price?
Until more information is released explaining FMR’s departure, further action on the back of such news could be premature, so you should consider your own personal circumstances if you are reviewing your current position or considering buying shares.
If it turns out that FMR left for reasons that have nothing to do with Hub24’s long-term potential, traders who sold in a panic may have cause for regret.
One to keep an eye on.
For Money Morning
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