Have Insiders Sold Pandora Shares Recently?

We wouldn't blame Pandora A/S (CPH:PNDORA) shareholders if they were a little worried about the fact that Peter Ruzicka, the Independent Chairman of the Board recently netted about kr.5.7m selling shares at an average price of kr.1,138. That sale reduced their total holding by 18% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Pandora

The Last 12 Months Of Insider Transactions At Pandora

The President & CEO, Alexander Lacik, made the biggest insider sale in the last 12 months. That single transaction was for kr.38m worth of shares at a price of kr.1,074 each. That means that even when the share price was below the current price of kr.1,112, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 12% of Alexander Lacik's stake.

All up, insiders sold more shares in Pandora than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Pandora 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. Pandora insiders own about kr.499m worth of shares. That equates to 0.6% 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.

What Might The Insider Transactions At Pandora Tell Us?

Insiders sold Pandora shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, Pandora makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Pandora. You'd be interested to know, that we found 2 warning signs for Pandora and we suggest you have a look.

Of course Pandora 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.