Why did The a2 Milk Company Limited’s [NZX:ATM] Share Price Fall 2.98% Today?

a2 Milk Limited’s stock value has declined by 2.98% today.

a2 Milk owns and licenses intellectual property for identifying cattle for the production and marketing of a2 Milk.

The company has a market capitalisation of $7.97 billion. At the time of writing, the share price is at $10.85.


Why has [NZX:ATM] share price decreased today?

Yesterday, the company’s director, Peter Hinton, disclosed his sale of 25,000 shares.

This comes just a couple weeks after CEO Jayne Hrdlicka sold all of her shares in the business.

And on 26 September, Scott Wotherspoon (Former CE UK and Europe) and Shareef Khan (Chief Operations Officer) also sold portions of their shares.

These recent sales could be causing worry among investors.


So where could the a2 Milk share price go from here?

Despite strong growth over the last year, the recent sell-offs from some members of the company’s corporate governance team have caused volatility to the share price.

In the short term, this volatility could lead to further spikes up and down.

However, it is possible that the share price may be able to recover and return to its former growth in the long term.

For more information, please read our recent issues regarding a2 Milk:

  • Milking China: A Kiwi Conundrum
  • A2 Milk: Cash Cow or Spoilt Milk?


Taylor Kee,
Editor, Money Morning New Zealand

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Taylor Kee is the lead Editor at Money Morning NZ. With a background in the financial publishing industry, Taylor knows how simple, yet difficult investing can be. He has worked with a range of assets classes, and with some of the world’s most thought-provoking financial writers, including Bill Bonner, Dan Denning, Doug Casey, and more. But he’s found his niche in macroeconomics and the excitement of technology investments. And Taylor is looking forward to the opportunity to share his thoughts on where New Zealand’s economy is going next and the opportunities it presents. Taylor shares these ideas with Money Morning NZ readers each day.

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