Shares of Activision Blizzard slid more than 5 percent on Tuesday after some insiders sold shares.
ASAC II LP, a limited partnership associated with CEO Bobby Kotick and Chairman Brian Kelly, agreed to sell 17.5 million shares, regulatory filings showed on Tuesday. The distribution date of those shares had pressured Activision's stock earlier this summer, according to Colin Sebastian, senior equity research analyst for Baird.
The partnership borrowed more than $800 million to buy the shares from Vivendi, which was at the time the controlling shareholder, in 2013, wrote Sebastian in a research note. Tuesday's sale of the shares was for financial and estate planning purposes, Sebastian wrote.
Activision, the maker of popular game franchises such as "Call of Duty" and "Skylanders," has seen its shares rise 37 percent over the past year, as smash hit "Overwatch" has generated buzz. CNBC has reached out to Activision Blizzard for more comment.