In short, in my experience on the ASX for sub ~$50M companies, the answer is "yes".
A variety of reasons, not least that many investors are following the player, not the ball. Take one out and others may depart as well.
The way the director acquired the shares is often key. A large vend and nil or nominal cost, 2 years escrow, come out the other end and anything is a profit. The obvious one to ask on the surface though for me is did the departing person leave on the best terms or is just 'over it' and cutting ties happens quickly usually.
Regards DC
ELE Price at posting:
2.9¢ Sentiment: Hold Disclosure: Not Held
(20min delay)