First Solar shares fell after short-seller James Chanos said insider stock selling and executives leaving the company is "never a good combination."
"You are seeing patterns that short sellers love," the president of Kynokos Associates told CNBC Thursday. "There's been enormous insider selling. The chairman has gotten rid of most of his stock in the last year and a half. And lots of people are leaving."
Shorting is selling assets, usually securities, that have been borrowed from a third party with the intention of buying identical assets back at a later date to return to the lender. Short sellers like Chanos want to profit from a decline in the price of the assets between the sale and the repurchase.