On Monday the Fastbrick Robotics Ltd (ASX: FBR) share price was amongst the worst performers on the local share market.
The shares of the robotic technology company finished the day lower by 11% to 16 cents.
What happened?
Yesterday's sell-off appears to be related to an announcement made after the market closed on Friday that revealed that Chief Technical Officer Mark Pivac had offloaded 1,548,000 ordinary shares on market for a total consideration of just under $275,000.
As we have seen in the past with the likes of Amaysim Australia Ltd (ASX: AYS), Bellamy's Australia Ltd (ASX: BAL), and Vita Group Limited (ASX: VTG), the market has a tendency to react very negatively to insider selling.
Because of this, I can't say I was too surprised to see shareholders heading to the exits yesterday.
However, it is worth noting that whilst 1.5 million shares may seem like a substantial sale, it represents only a small portion of his holding.
Mr Pivac still holds 95 million ordinary shares, of which approximately 83 million are subject to escrow until 6 November 2017.
Should you buy the dip?
Whilst I'm a huge fan of the company and its Hadrian X robotic bricklayer, I'm still not a buyer of its shares just yet.
The recent memorandum of understanding it entered into with US-giant Caterpillar is undoubtedly a huge step forward for the company, but ultimately I intend to hold off and wait to see whether or not the two parties are able to successfully sell the technology to Caterpillar's construction customers.
