In afternoon trade the a2 Milk Company Ltd (Australia) (ASX: A2M) share price is down by around 3% to $3.33.
This makes the fast-growing dairy company one of the worst performers on the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO).
What happened?
Whilst there was no material news out of the company today, one announcement that caught my eye this morning related to further insider selling.
According to the release, A2 Milk's CEO Geoffrey Babidge has offloaded a further 600,000 shares.
This means that in the last 18 months Mr Babidge has halved his holding in the company to 5 million partly paid ordinary shares.
Once again he has reiterated that this sale is in order to achieve a more balanced portfolio over time, and nothing to do with the company's performance.
Whilst I think this is more than reasonable, I can also fully understand why some investors may be spooked by such actions.
Especially considering how directors at rival Bellamy's Australia Ltd (ASX: BAL) offloaded a significant amount of shares ahead of its fall from grace.
What now?
A2 Milk's shareholders could take heart from the fact that in the past its shares have generally gained strongly in the weeks following Mr Babidge's share sales.
While only time will tell what happens from here, I would suggest investors remain calm and continue to hold its shares for the long-term.
