REA Group Limited (ASX:REA) share price falls after CEO sells virtually all her shares in the company

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The REA Group (ASX:REA) share price has fallen $2.56 or 2.74 per cent to $90.79 after the AFR revealed CEO Tracey Fellows sold virtually all her shares in the company.

According to an ASX Change of Director’s Notice, Ms Fellows sold 10,218 REA shares on 17th August 2018 at an average price of $89.20 per share. The sale netted her $911,490.06.

Just yesterday, the REA share price hit an all-time high of $94.12, before closing at $93.35.

After the sale, Ms Fellows is left owning just 12 REA shares, worth just over $1,000.

The AFR reports a spokesperson for REA as saying the sale was made “for personal reasons at a time when the market was fully informed”.

According to the REA audited financial statements, Ms Fellows total renumeration for FY18, including incentives, was $3.285 million.

On August 10th, REA reported full year profits jumped 23 per cent to $279.9 million, with a strong increase in its Australian residential business even as the housing market slowed.

At the time, REA said the lower listing rate is expected to continue in 2018/19, with volumes down four per cent in July and the upcoming Victorian and NSW state elections also set to disrupt the nation’s two biggest markets.

REA is a high quality company, one of ten ASX 200 shares I think can beat the traditional blue chips over the next 3 years.

But REA share are not cheap, trading on price to earnings (P/E) ratio of 42 times earnings.

REA Group shares don’t look cheap, but these 3 shares do…

Combining countless hours of research with over 30 years of hands-on stock market investing experience, The Capital Club’s founder Bruce Jackson has just published his definitive list of 3 Cheap and Good ASX Stocks for 2018.

REA Group was not one of them, but the list does include one tiny gold mining stock, and the company one top fund manager calls the cheapest stock in the ASX 100.

Find out why these 3 Cheap and Good Stocks could be better buys than REA Group. But you better hurry… these stocks may not stay cheap for long.

See the 3 stocks

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Contributors to this article may own shares in some of the companies mentioned in this article. The Capital Club has a thorough disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
Bruce Jackson has 30 years of hands on investing experience. He is passionate about stock market investing, running his own portfolio and SMSF. His focus is on small cap growth stocks. You can contact Bruce at brucej@thecapitalclub.com.au