There has been a big sale of Pushpay (ASX: PPH) shares by the largest shareholder, the Huljich family. The Pushpay share price is down 7% in early trading.
What is Pushpay?
Pushpay Holdings Ltd is a New Zealand based donation systems and software business for religious, not-for-profits and education providers in the US, Canada, Australia and New Zealand. Pushpay is used by over 7000 churches worldwide. The average gift is $192. Pushpay makes money by charging a subscription fee for its app but also from clipping the ticket on processing donations.
What happened today?
It has been announced that shareholders associated with the Huljich family have sold 25% of their shares in Pushpay.
After the sale, the Huljich family are expected to remain the largest shareholder of Pushpay with a combined relevant interest in 43.2 million shares.
The Huljich family has sold just over 14.4 million shares for NZ$8.60 per share for NZ$123.9 million in total.
But the family said they will remain committed to Pushpay. Peter Huljich will remain on the Pushpay Board and Christopher Huljuch will continue to act as his ‘alternate director’.
Peter Huljich said: “The outlook for Pushpay remains positive. We look forward to continuing to support the company is it seeks to deliver upon its strategy of becoming the preferred provider of mission-critical software to the US faith sector. The Huljich family confirms that it does not have any current intention to sell further shares in Pushpay and has provided an undertaking to the underwriters not to sell further shares in Pushpay until after Pushpay’s FY21 interim results are announced”.
Summary
I can understand why the Huljich family sold shares. The Pushpay share price has risen strongly. Even after the current 7% fall, it’s still up 205% since 16 March 2020. Taking some of the profit off the table may be a wise move. Pushpay has a great future, but some tech shares have had a lot of momentum over the past few months.
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