Shares of the ASX-listed WiseTech Global Limited (AU:WTC) plunged today after the company initiated a review into the media allegations against its founder and CEO Richard White. According to the Australian Financial Review (AFR), White has faced allegations concerning his personal life, including claims of payments to a former sexual partner. Neither the company nor White has issued an official statement on the matter. WiseTech shares declined nearly 15% on Monday.
WiseTech Global provides cloud-based software solutions, specializing in end-to-end logistics management with its flagship product CargoWise.
WiseTech Investigates Alleged Payments by CEO
WiseTech stated that its board is thoroughly reviewing all issues highlighted in media reports by gathering more details and consulting external experts. Additionally, the company said that it will carefully assess all factors in its evaluation, considering the possible impacts of this news.
According to the media reports, a woman who had a sexual relationship with White made several serious accusations against the billionaire in 2020, including claims of inappropriate behaviour. The alleged payments by WiseTech’s CEO were made to resolve the issue.
Earlier this month, White sold another significant portion of his WiseTech shares after a major sale in September. According to the filing, White sold 461,891 shares of the company between October 3 and 10. These sales were carried out in a series of market transactions through RealWise Holdings, majorly owned by White. This transaction, along with the stock sale in the previous month, lowered White’s stake in WiseTech by over $100 million.
White has been leading WiseTech since 1994 and holds significant influence as the company’s founder, CEO, and largest shareholder.
What Is the Target Price for WiseTech?
In terms of share price appreciation, analysts are not so bullish on WTC stock. According to TipRanks’ rating consensus, WTC stock has a Hold rating, backed by four Hold and one Buy recommendation. The WiseTech Global share price forecast is AU$96.96, indicating a downside of 8% on the current level.
