The Vulcan Energy (ASX:VUL) share price is down 12% this week. What's happening?

A significant shareholder in Vulcan Energy took some chips off the table…

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It has been a rough week for the Vulcan Energy Resources Ltd (ASX: VUL) share price, falling around 12% to its current $10.54 price point.

In early trade today, the net-zero lithium aspirant is trading 0.85% lower. Meanwhile, the company remains a considerable 57% away from its 52-week high.

An ASX filing earlier in the week is the latest development for the Vulcan Energy share price. Let's take a closer look at the details.

A frustrated male investor frowns with his hands and arms open asking why the share price has dropped today.

Image source: Getty Images

Rinehart partially cashes out during Vulcan attack

The past two months have been tumultuous for Vulcan Energy and its directors. Following a scathing report from short-seller J Capital, the ASX-listed company has been busily operating in damage control mode. However, this finally came to an end on 15 December with a settlement between Vulcan and J Capital.

Momentarily the dust had settled for the clean energy company until the latest ASX filing, which might have drawn the attention of investors. The filing in question is a 'change in substantial holding' notice regarding the holdings of mining magnate Gina Rinehart.

According to the filing, Rinehart decided to partake in the Vulcan Energy share price sell-off. Over the course of three days between 8 November and 10 November, the billionaire sold 930,000 Vulcan shares. Based on the prices of each sale, the total value sold was $10.2 million.

This might be sounding the alarm bells for some Vulcan Energy investors. Though it's worth mentioning Rinehart still retains more than 7 million shares worth roughly $78 million.

Vulcan Energy share price snapshot

It's hard to paint 2021 as a bad year for the Vulcan Energy share price. Probably because in quantifiable terms it wasn't. Since the start of the year, shares in the lithium hopeful have skyrocketed 283%.

In fact, if the company were in the S&P/ASX 200 Index (ASX: XJO) it would be the fourth-best performing share in the last year.

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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