Insiders Of Freja eID Group Retain kr6.4m Of Investment Selling At Higher Prices
Despite a 14% gain in Freja eID Group AB (publ)'s (STO:FREJA) stock price this week, shareholders shouldn't let up. Although prices were relatively low, insiders chose to sell kr6.4m worth of stock in the past 12 months. This could be a sign of impending weakness.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Freja eID Group
In the last twelve months, the biggest single sale by an insider was when the Chief Product Officer, Kristofer von Beetzen, sold kr5.7m worth of shares at a price of kr15.95 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of kr21.60. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was 82% of Kristofer von Beetzen's holding.
In the last twelve months insiders purchased 32.42k shares for kr534k. But insiders sold 398.52k shares worth kr6.4m. Over the last year we saw more insider selling of Freja eID Group shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Check out our latest analysis for Freja eID Group
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Freja eID Group Insiders Bought Stock Recently
There was some insider buying at Freja eID Group over the last quarter. insider Pär-Ola Gustavsson bought kr110k worth of shares in that time. It's great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Freja eID Group insiders own 7.9% of the company, worth about kr49m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Freja eID Group Insiders?
The recent insider purchase is heartening. But we can't say the same for the transactions over the last 12 months. While recent transactions indicate confidence in Freja eID Group, insiders don't own enough of the company to overcome our cautiousness about the longer term transactions. Overall they seem reasonably aligned. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Freja eID Group.
Of course Freja eID Group may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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