The ARQ Group Ltd (ASX: ARQ) share price is down 38% to 80 cents in trade today after the group formerly known as Melbourne IT handed investors a big downgrade to its profit guidance.
In fact ARQ Group might want to undertake another rebranding soon, looking at today's share price chart.
Source: Google Finance, June 25, 2019
In downgrading its guidance ARQ's CEO, Martin Mercer, warned that its enterprise services decision was underperforming due to "execution issues" and "unexpected delays in turning on revenue from new contracts".
Still it's not all bad news for the CEO as he was fortunate enough to sell 190,941 shares (apparently for tax reasons) at an average price of $1.723 just back on May 21-23, 2019.
Moreover, at the time Mr Mercer stated he was "reluctantly" selling the shares and remained positive on ARQ's growth outlook.
Interestingly, the Kogan.com Ltd (ASX: KGN) founders also told the market they were "reluctantly" selling 6 million shares for $7 per share not long before its own share price tumbled on the back a weaker-than-expected trading update.
As I wrote yesterday in an article on Dicker Data Ltd (ASX: DDR) C-suite members can buy or sell for many reasons and their actions can often be lead indicators for investors as to how a company is performing.
