Shopify's stock price plummeted 5.13% during the pre-market trading session on Wednesday, as concerns mounted over a recent surge in insider selling at the e-commerce company.

According to regulatory filings, Shopify insiders have sold a significant amount of stock over the past three months, totaling around US$10 million worth of shares. Notably, the company's VP of Product and COO, Kasra Nejatian, made the biggest single sale, offloading US$3.4 million worth of shares at a price of US$110 each.

While insider selling alone does not necessarily indicate a negative outlook, the sheer volume of stock unloaded by multiple insiders has raised eyebrows among investors. Analysts suggest that such significant insider transactions could be a red flag, potentially signaling insiders' lack of confidence in the company's future prospects.