One of the more impressive movers in the market this week has been Canoo (NASDAQ:GOEV). After yesterday’s rally tied to short squeeze interest in this electric vehicle (EV) maker, shares of GOEV stock have dropped approximately 4% today, giving up most of those gains. This move comes following a report that Canoo’s 10% owner DD Global has offloaded part of its stake.

Now, this sale of a little more than 1.8 million shares at a price between $4 and $4.18 per share is significant. After all, DD Global netted approximately $7.4 million from the transaction. However, compared to the total ownership of GOEV stock by corporations (around 30 million shares), it’s a relatively small amount. Accordingly, perhaps today’s relatively muted move makes sense.

That said, insider buying and selling activity is important for investors to watch. Let’s dive into what this share sale means for investors.

What to Make of GOEV Stock Following Share Sale

Buying and selling activity from early investors, or those who know a given company well, can often be a helpful gauge for investors considering whether a particular moment in time is a great time to jump into a given stock. In general, we can assume that DD Global may have a better handle on the inner workings of Canoo. Accordingly, for retail investors, this begs the question, why sell shares now?

After all, GOEV stock is down considerably from its peak. Investors may not have batted an eye at a company taking some profits in this stock when it was trading above $10 per share. However, at these levels, it’s understandable for many investors to take away a message of concern. If DD Global thought this stock would head higher in the medium term, there would be a greater indication to hold on (or add) to its position.

That said, Canoo is an EV startup that has also seen some rather impressive moves higher of late. It’s important to keep this stock price in context. GOEV stock has more than doubled from its 52-week lows, in part due to a partnership with Walmart (NYSE:WMT). Thus, perhaps this is the bounce DD Global was looking for.

From here, it’s hard to gauge which direction this stock is heading. Perhaps that’s why now may be a great time to trim. It’s what the experts are doing, after all.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.