Have Cheffelo Insiders Been Selling Stock?
We wouldn't blame Cheffelo AB (publ) (STO:CHEF) shareholders if they were a little worried about the fact that Olle Qvarnstrom, the Independent Director recently netted about kr11m selling shares at an average price of kr124. That's a big disposal, and it decreased their holding size by 12%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At Cheffelo
Notably, that recent sale by Olle Qvarnstrom is the biggest insider sale of Cheffelo shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of kr120. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Happily, we note that in the last year insiders paid kr1.0m for 8.61k shares. But insiders sold 205.49k shares worth kr25m. In total, Cheffelo insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
View our latest analysis for Cheffelo
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership Of Cheffelo
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. Cheffelo insiders own about kr679m worth of shares (which is 44% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Cheffelo Insider Transactions Indicate?
Insiders sold Cheffelo shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But since Cheffelo is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cheffelo. Every company has risks, and we've spotted 2 warning signs for Cheffelo you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.