On Friday the Avz Minerals Ltd (ASX: AVZ) share price was one of the worst performers on the market with a decline of almost 11% to 12.5 cents.
Unfortunately for shareholders, this may just be the beginning of even steeper declines.
After the market closed on Friday the company released two change of director's interest notices.
As you might have guessed, Avz Minerals' directors were not busy buying more of the company's shares.
According to the release, executive chairman Klaus Eckhof offloaded 25 million shares on-market last week. That equated to approximately 28% of his holding at the time and leaves Mr Eckhof with 63 million Avz Minerals shares.
Non-executive director Patrick Flint joined Mr Eckhof in offloading shares last week. Mr Flint reduced his indirect interest by 2 million shares, leaving him with an indirect interest of 16 million shares.
No explanation was given for either of the sales.
What's next?
Insider selling rarely goes down well with the market and the lack of explanation only makes things worse.
Whilst the directors may merely wish to diversify their own personal holdings, such actions do not fill fellow shareholders with the confidence that the share price can climb higher.
In light of this, I think there's every chance that fellow shareholders could head to the exits in their droves when the market opens on Monday, dragging the share price significantly lower.
