Despite the fact that EQL Pharma AB (publ)'s (STO:EQL) value has dropped 10% in the last week insiders who sold kr1.3m worth of stock in the past 12 months have had less success. Insiders might have been better off holding onto their shares, given that the average selling price of kr52.22 is still below the current share price.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
EQL Pharma Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the President & CEO, Axel Schorling, sold kr1.2m worth of shares at a price of kr51.30 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is kr25.30. So it is hard to draw any strong conclusion from it.
Over the last year we saw more insider selling of EQL Pharma shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for EQL Pharma
I will like EQL Pharma 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.
Insider Ownership Of EQL Pharma
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Our data suggests EQL Pharma insiders own 3.8% of the company, worth about kr28m. However, it's possible that insiders might have an indirect interest through a more complex structure. We consider this fairly low insider ownership.
So What Do The EQL Pharma Insider Transactions Indicate?
It doesn't really mean much that no insider has traded EQL Pharma shares in the last quarter. We don't take much encouragement from the transactions by EQL Pharma insiders. The modest level of insider ownership is, at least, some comfort. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For instance, we've identified 3 warning signs for EQL Pharma (1 is a bit concerning) you should be aware of.
But note: EQL Pharma may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.