I've always thought it was an interesting issue to ponder and I've never been as concerned as others (I'm sure wrongly on occasions) but I thought I'd throw out there a couple of examples of director selling followed by SP runs with fundamentals to back it up:

Cettire - Dean Mintz sold 35 million shares @ 1.35 in March 22 and then followed it up in November 22 with another 41 million shares @ 1.46. Surely this was a harbinger of doom? Well the fundamentals continue to look pretty good and the SP is 4.68 today. Put another way, DM has cost himself about a couple of hundred mill by selling too early if you want to see it that way (I still think it was reasonable diversification).

Droneshield - Oleg sold 7 million shares and some unlisted options worth just under 2 million dollars in June 22 and sold another 3.5 million in July 23 at an average price of about 24 cents/share. Shares have since run to today's SP of 69 cents/share.

My contention is not that director selling can't be of concern but if you have conviction that it might be costly (and painful) to let it push you out of the business.