Why Evofem Biosciences Stock Is Plunging Today

Shares of Evofem Biosciences (NASDAQ: EVFM) are down by 20.6% as of 11:43 a.m. EDT on Friday, after dropping by as much as 25.4% earlier today. These massive losses came after it was made public that the company's CEO, Saundra Pelletier, sold 360,888 shares of the company on Sept. 9, for $3.26 per share.

Officers and directors of a publicly traded company are required by law to disclose information regarding when they buy or sell shares of the business. This information can be invaluable to investors, as these high-level executives possess some information regarding the direction of the company that no one else has. When the CEO of a company dumps stock, it can be taken as a sign of bad news to come, which often leads to the company's shares falling. That's what's happening today with Evofem Biosciences.

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Source Fool.com