The Dicker Data Ltd (ASX: DDR) share price is giving back all its gains made in the past few days, with the IT distributor set to end the week on a disappointing note.
At the time of writing, Dicker Data shares are swapping hands for $14.50, down 9.32%.
What did Dicker Data announce?
Concerns are rising among investors, sending the company’s share price into freefall.
According to the company’s latest release, its chair and CEO David Dicker sold a parcel of his shares today.
In total, 2.74 million Dicker Data shares were offloaded in an on-market trade at a price of $15.40 per share. While this is not uncommon as directors and CEOs alike sell for various reasons, the company noted the sale was to meet “personal projects”.
The transaction represents roughly 1.6% of Dicker Data’s share registry, and reduced Mr Dicker’s entire holding to around 33.6%.
Furthermore, the company noted that Mr Dicker has entered into a lock-up arrangement on his remaining shares until the end of 2021. This essentially means the chair and CEO won’t be selling those shares anytime soon.
Mr Dicker made a series of purchases between 17 March and 1 April 2020, taking advantage of the share-price weakness when COVID-19 hit. Mr Dicker bought 186,505 shares in on-market trade for about $861,500.
Dicker Data share price snapshot
Despite today’s drop, over the past 12 months, Dicker Data shares have rocketed 88%, with year-to-date gains of around 40%.
In particular, the past month has been an extremely positive one for investors, with its shares up 30%. Just yesterday, the company released its interim results for FY21, highlighting solid growth throughout the year. The Dicker Data share price hit a record high of $16.60 during the day.
Based on today’s price, Dicker Data commands a market capitalisation of approximately $2.5 billion, with 172.7 million shares on hand.
The post Why the Dicker Data (ASX:DDR) share price is sinking 9% today appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. 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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