Global Opportunities Beyond the Radar

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

Synlait milk

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:

Regards,

Taylor Kee,
Editor, Money Morning New Zealand

Exit mobile version