Shares of private markets investment firm P10 (NYSE:PX) fell 3.6% in the morning session after multiple insiders reported significant stock sales, raising concerns for investors.

An SEC filing showed that on September 22, Edwin A. Poston sold 107,976 shares for a total value of approximately $1.3 million. This followed a separate transaction where Director David M. McCoy sold 44,000 shares on September 19 for over $531,000. While companies can have strong fundamentals, large sales by key insiders can sometimes be seen by the market as a lack of confidence in the company's near-term prospects. These sales took place after the company reported a 15% earnings beat for its second quarter, but the market appeared to focus more on the insider activity, leading to the stock's decline.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy P10? Access our full analysis report here, it’s free.

P10’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

P10 is down 12.8% since the beginning of the year, and at $11.20 per share, it is trading 21% below its 52-week high of $14.17 from November 2024. Investors who bought $1,000 worth of P10’s shares at the IPO in October 2021 would now be looking at an investment worth $927.16.

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