Dollar General CEO Sells $19 Million Worth of Shares, Spurs Concerns



Dollar General CEO Sells $19 Million Worth of Shares, Spurs Concerns



Richard Dreiling, CEO of retailer Dollar General, has disclosed to the SEC that he has sold nearly $19 million worth of shares in the company.



Does the CEO know something that the rest of us do not? Typically, CEOs are trusted to lead a company towards increased profitability, in part because they themselves usually have a significant stake in the company, via stock options.

By selling a large portion of his shares, some commentators are speculating that Dollar General's share price might be nearing some kind of peak.

The company has had 24 consecutive years of same-store sales growth. Same-store sales increased 3.3% for 2013, but only up 1.6% for Q4 of that year. A reversal of this trend could cause a reduction in the stock's price, according to the Motley Fool.

The most recent earnings report described "an aggressive competitive retail landscape and our customers' uncertainty about spending in the current economic environment." Dreiling said, "we remain cautious on the current operating environment and the many challenges our customer is facing in 2014."

There are many reasons Dreiling might have decided to sell, and his true motivations are not immediately apparent. Regardless of his reasons, Dollar General stockholders are obviously hoping Dreiling's actions are not indicative of a share price decline on the horizon.

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