What happened
Shining brightly to start the week, shares of Enphase Energy (ENPH +1.66%) rose nearly 4% yesterday. Today, however, the solar stock is headed in the other direction. While the S&P 500 and Dow Jones Industrial Average have fallen about 1.4% and 1%, respectively, shares of Enphase Energy are down 7.4% as of 1:50 p.m. ET.
Investors are clicking the sell button today after learning that the company's president and CEO, Badri Kothandaraman, sold shares himself.
NASDAQ: ENPH
Key Data Points
So what
According to the regulatory filing made public yesterday, Badri Kothandaraman sold 38,650 shares of Enphase Energy on June 23 in a transaction valued at about $7.3 million. Although Kothandaraman's position in Enphase is smaller, he still retains a sizable position in the company, holding about 1.06 million shares.
Growth investors, such as those who have positions in Enphase Energy, are likely on edge as it is with the recent market downturn. Seeing a key figure in the C-suite winnow his position, however, may seem like a glaring signal that there are significant challenges facing the company, and they may also recognize it as a harbinger of a steeper decline in the stock price.
Now what
It's unsurprising that the market is reacting the way it is today. However, it's critical for investors to remain steadfast in their convictions. If they're bullish on Enphase's stock for the long term -- and there are plenty of reasons to believe that they should be -- there's no reason to sell shares today. Rather, investors can recognize the recent dip as a buying opportunity.
