What happened Shares of teen clothier American Eagle Outfitters (NYSE: AEO) are dropping today, falling 4.4% through 10:15 a.m. EDT -- but to find out why this is happening, you need to go back to what happened on Friday. So what Specifically, you need to go back to Friday's report from SECform4.com, which noted that two days prior, on April 21, American Eagle's president, Charles Kessler, sold 41,859 shares of his company's stock -- 42% of all the stock he owned -- for about $1.5 million. In fact, while Kessler's sale was the largest reported, SECform4.com notes that that same day, April 21, two other American Eagle insiders also sold sizable stakes in the company -- director David Sable sold 10,000 American Eagle shares, and company COO Michael Rempell sold 12,417 shares. Image source: Getty Images. Now what It's understandable that these sales might have spooked investors a bit, but here's the thing: Here at The Motley Fool, we like to remind investors that there are all sorts of reasons why insiders -- why anyone -- might want to sell a stock. One might want to diversify their stock portfolio. Another might want to buy a boat. A third might need ready cash to pay taxes. ('Tis the season, after all.) Insider knowledge of upcoming bad news is only one potential reason, and you shouldn't jump to the conclusion that just because some insider is selling, you should follow along and sell, too. And, I might add, especially not with a stock like American Eagle Outfitters, where the P/E ratio is a cheap 7.1 times earnings. 10 stocks we like better than American Eagle OutfittersWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and American Eagle Outfitters wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source