The Dicker Data Ltd (ASX: DDR) share price is again in negative territory today following two weeks of significant losses.
The dramatic fall in the company’s shares follows the IT distributor’s announcement of director transactions.
At the time of writing, Dicker Data shares adding to its woes, are down a further 2.09% to $13.10. This means that since 26 August, the company’s share price has fallen 21%.
Why is Dicker Data shares coming under pressure?
Investors are continuing to head for the hills, selling Dicker Data shares after a worrying market update on 27 August.
According to its release, the company revealed that its chair and CEO, David Dicker sold a portion of his shares.
The news didn’t go down well with investors, sending the Dicker Data share price down 9% on the day.
Mr Dicker offloaded a total of 2.74 million shares in an on-market trade at a price of $15.40 per share. The company advised that the sale was in relation to meet “personal projects” by the chair and CEO.
The transaction represented roughly 1.6% of Dicker Data’s share registry and reduced Mr Dicker’s entire holding to about 33.6%.
To appease shareholders, the company said that Mr Dicker entered into a lock-up arrangement on his remaining shares until the end of 2021.
However, taking advantage of the share price weakness, a number of directors took the opportunity to top up their holdings. While it was nowhere near the amount transacted by Mr Dicker, the company’s share rose 5% on the update.
Unfortunately, since the 2 September buying, Dicker Data shares have given back those gains.
Dicker Data share price summary
Over the past 12 months, Dicker Data shares have accelerated by almost 80%, with year-to-date above 25%. The company’s share price reached an all-time high of $16.60 following the release of its interim results for FY21.
Based on today’s price, Dicker Data commands a market capitalisation of around $2.27 billion, with 172.8 million shares on issue.
The post Dicker Data (ASX:DDR) share price continues to slide, down 21% since late August 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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