Pexip Holding Insiders Sell US$7.2m Of Stock, Possibly Signalling Caution
Many Pexip Holding ASA (OB:PEXIP) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.
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 Pexip Holding
The insider, Phillip Austern, made the biggest insider sale in the last 12 months. That single transaction was for kr6.6m worth of shares at a price of kr65.92 each. That means that an insider was selling shares at slightly below the current price (kr84.00). 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was 100% of Phillip Austern's holding.
In the last twelve months insiders purchased 97.82k shares for kr6.2m. But insiders sold 109.00k shares worth kr7.2m. In total, Pexip Holding 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 Pexip Holding
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Does Pexip Holding Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company 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. Pexip Holding insiders own about kr685m worth of shares. That equates to 7.8% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Pexip Holding Insiders?
The fact that there have been no Pexip Holding insider transactions recently certainly doesn't bother us. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Pexip Holding insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Pexip Holding. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Pexip Holding.
But note: Pexip Holding 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.