By selling kr6.4m worth of Freja eID Group AB (publ) (STO:FREJA) stock at an average sell price of kr16.03 over the last year, insiders seemed to have made the most of their holdings. The company's market worth decreased by kr66m over the past week after the stock price dropped 10%, although insiders were able to minimize their losses
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Freja eID Group
The Chief Product Officer, Kristofer von Beetzen, made the biggest insider sale in the last 12 months. That single transaction was for kr5.7m worth of shares at a price of kr15.95 each. That means that even when the share price was below the current price of kr20.00, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 82% of Kristofer von Beetzen's stake.
Over the last year, we can see that insiders have bought 27.42k shares worth kr424k. But they sold 398.52k shares for kr6.4m. In total, Freja eID Group insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Check out our latest analysis for Freja eID Group
I will like Freja eID Group better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Freja eID Group Insiders Bought Stock Recently
There was some insider buying at Freja eID Group over the last quarter. Insiders shelled out kr290k for shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. However, in this case the amount invested recently is quite small.
Does Freja eID Group Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that Freja eID Group insiders own 14% of the company, worth about kr77m. However, it's possible that insiders might have an indirect interest through a more complex structure. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Freja eID Group Tell Us?
The recent insider purchases are heartening. On the other hand the transaction history, over the last year, isn't so positive. The more recent transactions are a positive, but Freja eID Group insiders haven't shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. In short they are likely aligned with shareholders. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Freja eID Group that deserve your attention before buying any shares.
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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.