Insiders appear to be flocking out of Vinco Ventures (NASDAQ:BBIG), sending shares of this consumer products company lower in today’s session. In fact, shares of BBIG stock are down more than 7% at the time of writing, outpacing declines seen in the broader market today.
Via an 8-K filing, Vinco Ventures announced that three directors have resigned from the board, effective immediately. These resignations occurred between June 27 and June 29. No details on potential replacements were provided.
The only additional statement provided in the 8-K, apart from the resignation announcements, was the following:
“None of the resignations were as the result of any disagreement with the Registrant, its management, the Board or any committee of the Board, or with respect to any matter relating to the Registrant’s operations, policies or practices.”
Let’s dive into what investors may want to make of this news.
BBIG Stock Sinks on News of Board Resignations
There can be many reasons why board members may choose to leave a company as a group. Without speculating too much, it appears some sort of internal drama has been brewing within the ranks to see this kind of mass exodus take place.
Indeed, it’s interesting to see the company put language in its filing that suggests no disagreement was the cause of these resignations. While that may be the case, investors are left wondering what the other reasons might be as to why these three high-ranking individuals left the company.
Uncertainty is not the friend of investors, and today’s selling pressure in BBIG stock makes sense in this context. We’ll have to see if the company makes any further announcements in terms of its leadership group. But for now, this is a company that investors appear to be siding with insiders on and stepping aside.
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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.