Megaport CEO Michael Reid sold all 335,341 ordinary shares he held on 30 September 2026, receiving A$6,917,529, according to his Appendix 3Y. The on-market sale came one day after Megaport announced nearly A$1 billion of new AI infrastructure contracts and lifted its FY27 guidance.
What Reid’s Appendix 3Y shows
Reid’s Change of Director’s Interest Notice shows the shares were held through Aion Perpetual Pty Ltd, a company of which he is sole director, as trustee for a trust he is a beneficiary of. The sale price works out to about A$20.63 a share.
The notice says the sale was made “to partially meet personal tax obligations” linked to equity awards under Megaport’s Employee Share Plan, and that the proceeds are not expected to cover those obligations in full. It also confirms the trade was not made during a closed period requiring prior clearance.
After the sale, Reid still holds 1,624,600 performance restricted stock units (PRSUs), of which 750,784 have vested. That is more than four times the number of shares he sold.
Why the timing stands out
On 29 September, Megaport announced three new AI infrastructure contracts through its Latitude.sh subsidiary, worth about US$685 million (A$978.6 million) over an average term of just over four years.
It also upgraded FY27 guidance:
- Group revenue: A$720 million to A$810 million, up from A$620 million to A$730 million
- EBITDA margin: 42% to 44%, up from 38% to 40%
- Group capex: A$1.78 billion to A$1.88 billion, up from A$1.28 billion to A$1.38 billion
A CEO selling the day after good news can look like a warning. In this case, the tax explanation and his large remaining PRSU holding point to a different reading.
A director bought the next day
Director Jon Gidney bought 4,971 shares on market on 1 October for A$99,702.59, about A$20.06 a share. His Appendix 3Y shows he held no Megaport shares before. He bought them through his superannuation fund.
A director buying with his own money at a price close to the CEO’s sale price is a useful counterpoint. Our article on Ryan Cohen’s GameStop buying shows how open-market purchases by insiders can signal conviction.
Is Reid’s sale a red flag?
Not on its own. Selling shares to pay tax on vested equity awards is common among executives, and Reid keeps substantial exposure to Megaport through his PRSUs. ASX director notices work much like the US filings explained in our guide on how to read SEC Form 4 filings.
What MP1 investors should watch
- Further Appendix 3Y notices, especially whether Reid holds shares from his vested PRSUs
- Delivery on the new contracts, which Megaport expects to reach full annual run-rate by Q4 FY27
- Capital spending, now guided at up to A$1.88 billion for FY27
Bottom line
Michael Reid’s A$6.9 million sale cleared out his ordinary shares, but Megaport says it was tax-driven and he still holds 1,624,600 PRSUs. With a director buying the next day, the filings point to a tax-driven sale rather than a loss of confidence.
This article is general information based on ASX filings and is not financial advice.
