Inside Sale Surge: AvePoint Chairman’s 32,000‑Share Dump Sparks Investor Alarm and Questions About Future Confidence

Insider Selling Continues at AvePoint: What It Means for Investors

AvePoint’s Executive Chairman, Gong Xunkai, has sold another 32,002 shares on January 12, 2026, as part of a pre‑approved Rule 10b‑5‑1 trading plan. The transaction, completed at $13.66 per share, reduces his post‑trade holdings to 14,948,666 shares—just below the 15 million‑share threshold that would trigger a “Section 16” filing. The sale was executed within a day of the company’s closing price of $13.50, a modest 0.04 % decline, yet the move was accompanied by a negative sentiment score of –10 and a modest 10.88 % communication buzz on social platforms.

Why the Continued Selling Matters

Gong’s trading cadence has accelerated over the past months, with 12 large sell‑orders between September and December 2025 alone. Each transaction has taken place under the same Rule 10b‑5‑1 plan, suggesting a disciplined, forward‑planned divestiture rather than an opportunistic “stop‑loss.” The consistent volume—often exceeding 30,000 shares per trade—indicates that the chairman is systematically reducing his exposure. While insiders often sell to diversify personal portfolios, the sheer frequency and size raise questions about internal confidence in short‑term momentum. For investors, this pattern may be interpreted as a warning sign, especially when juxtaposed with the company’s steep 52‑week low of $11.49 and a price‑to‑earnings ratio of 1,720, which already signals a valuation premium far above earnings.

Impact on Share Price and Investor Sentiment

The market’s reaction to insider sales is typically muted when the sales are part of a pre‑approved plan, but the cumulative effect of multiple large trades can erode investor confidence. On January 12, the share price dipped 7.14 % in the week, reflecting broader market weakness rather than a reaction to the sale itself. Nevertheless, the negative social media sentiment and modest buzz suggest that retail investors are paying closer attention to insider activity. If the trend continues, analysts may reassess the sustainability of AvePoint’s high valuation, potentially tightening the price target.

A Quick Look at Gong Xunkai’s Trading Profile

Gong has sold a total of approximately 1.1 million shares since June 2025, a significant portion of his equity stake. His trades have been concentrated in the first half of the year, with a spike in late September (over 2 million shares sold on September 18, 2025) and a steady stream of 10–30 k share blocks thereafter. The average sale price hovered around $15, aligning with the mid‑year trading range and well above the 52‑week low. Despite the high sales volume, Gong’s holdings remain substantial, suggesting that he still maintains a vested interest in the company’s long‑term trajectory.

What Investors Should Watch

1. Trading Plan Expiry – Gong’s Rule 10b‑5‑1 plan was adopted on June 22, 2025. Once the plan’s horizon closes, any additional sales will become “outside the plan” and trigger more scrutiny.
2. Earnings Guidance – AvePoint’s earnings per share (EPS) remains below market expectations, and the price‑to‑earnings ratio remains exceptionally high. Any future insider selling could amplify pressure on EPS forecasts.
3. Market Volatility – With a 7 % weekly decline, the stock is vulnerable to short‑term swings. Investors should monitor whether insider selling continues to align with broader sell‑offs or persists independently.

In sum, Gong Xunkai’s recent sale is another piece in a larger puzzle of insider activity that is already raising eyebrows. While the trades are technically compliant, the pattern of frequent, sizable sales in a high‑valuation context could signal a shift in internal confidence. Investors should consider this trend when evaluating AvePoint’s upside potential and risk profile.