The Brainchip Holdings Ltd (ASX: BRN) share price is trading lower today.
In afternoon trade, the artificial intelligence technology company’s shares are down by 5.33% to 50 cents.
Putting a few chips in the back pocket
It appears investors are today taking a leaf out of co-founder Peter Van Der Made’s book as he sold down his Brainchip shares last week.
The interim chief and co-founder reduced his holdings by selling a total of 2.57 million shares at an average price of 54 cents. The sale netted Van Der Made a total of $1.39 million dollars.
According to the disclosure, Van Der Made continues to hold a significant holding of some 173.7 million shares in the company, worth about $86.85 million at the current Brainchip share price.
Despite the sale, the co-founder remains Brainchip’s largest shareholder with a 10.6% stake in the company.
Investors might be concerned about the sale, considering the company is yet to appoint a new chief executive officer. Previous CEO Louis DiNardo suddenly exited Brainchip back in March by mutual agreement.
The silence is deafening
Shareholders rarely look fondly on insiders selling. Especially when there has been a lack of announcements from the company regarding its Akida chip more recently.
In the past year, ASX-listed Brainchip reported US$26.8 million in losses. This is due to the company still awaiting production completion and sales.
Meanwhile, Van Der Made has not been the only insider taking some money off the table. Co-founder and chief development officer Anil Mankar sold $9.55 million worth of Brainchip shares back in April.
Despite the sell downs, the company insists it is on track to produce its ultra-low power edge-computing processor.
Brainchip share price recap
Brainchip shares have weakened since March, falling 34% from a high of 75 cents. But it’s not all doom and gloom — the company’s shares are still up a staggering 534% over the last year.
However, it has been a subdued 2021 for the chip developer. Much of the market is now patiently awaiting production and revenue. Until then, the Brainchip share price offers little more information for investors to speculate over.
The post Brainchip (ASX: BRN) share price weakens after co-founder sells shares appeared first on The Motley Fool Australia.
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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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