Unfortunately for its shareholders, the Asaleo Care Ltd (ASX: AHY) share price has been one of the worst performers on the market this morning.
At the time of writing its shares are down almost 8% to $1.65.
What happened?
Although there was no material news out of the personal care and hygiene company today, after the market closed on Friday Asaleo released a change of director's interest notice to the market.
That notice revealed that its CEO and managing director Peter Diplaris sold 1,156,341 shares in the company. By offloading these shares, it halved his stake in the company.
As we saw on Friday with a2 Milk Company Ltd (Australia) (ASX: A2M), the market doesn't react well to insiders selling shares.
Especially following the insider selling at Bellamy's Australia Ltd (ASX: BAL) prior to its fall from grace. So I can't say I'm surprised to see its shares fall today.
According to the release Mr Diplaris has sold his shares for personal reasons including meeting family tax obligations, and remains fully committed to Asaleo's long-term goals and growth.
Should you buy the dip?
Following today's decline, Asaleo's shares are changing hands at just under 14x trailing earnings.
Whilst this is cheap in comparison to the rest of the market, it may be justified considering management has forecast low single-digit profit growth this year.
As I'm not overly optimistic on the company's future given the challenging retail environment, I suggest investors stay clear of Asaleo for the time being and focus elsewhere in the market.
