The Xero Ltd (ASX: XRO) share price is sliding again on Monday following a new announcement from the accounting software company.
At the time of writing, Xero shares are down 4.24% to $70.29. The S&P/ASX All Technology Index (ASX: XTX) is also lower, although its 1.33% fall is much smaller.
The latest drop adds to a painful year for shareholders. Xero shares have now fallen almost 40% in 2026 and around 60% over the past 12 months.
Here’s the latest.
CEO sells remaining ordinary shares
According to the release, Singh Cassidy sold 29,608 Xero shares on market on 7 July at $74 apiece.
The transaction was worth just over $2.19 million, with Xero saying the sale was made to manage personal tax obligations.
Interestingly, the sale means Singh Cassidy no longer holds any ordinary Xero shares directly. However, she still has plenty riding on the company through 171,381 restricted stock units and 1,038,308 unlisted options.
Those holdings leave her with plenty of exposure to how Xero performs from here.
More than $7.5 million sold since May
The latest sale follows another large disposal by Singh Cassidy only a few weeks earlier.
Between 26 May and 2 June, she sold 70,737 Xero shares for around $5.4 million. Xero also said those sales were made to cover tax obligations.
Combined, the two transactions have seen the Chief Executive sell 100,345 shares worth roughly $7.6 million since late May.
Both sales have been linked to tax obligations, but the timing isn’t a great look when Xero shares are already trading near their 52-week low of $65.
Strong growth has not stopped the slide
Xero’s share price had already been falling despite solid growth in the underlying business.
Its FY26 result showed operating revenue rising 31% to NZ$2.75 billion, while adjusted EBITDA increased 18% to NZ$757.4 million. Net profit fell 27% to NZ$167.4 million as acquisition costs linked to US payments business Melio weighed on the result.
Management expects FY27 operating revenue of between NZ$3.62 billion and NZ$3.73 billion. Adjusted EBITDA is forecast to reach NZ$860 million to NZ$920 million.
Why are Xero shares falling?
Today’s CEO sale seems be adding to the selling, while the weaker tech sector is also working against the stock.
However, the 60% decline over the past year points to much bigger concerns.
Investors are weighing the price paid for Melio, higher costs, and the time needed to turn faster US growth into stronger profits.
The business is still growing revenue and customers, but the market wants to see more of that growth flow through to the bottom line.
The post Another CEO share sale has this ASX 100 tech stock sinking 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. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.