Insider Sellers Might Regret Selling Gubra Shares at a Lower Price Than Current Market Value

Despite the fact that Gubra A/S' (CPH:GUBRA) value has dropped 10% in the last week insiders who sold kr.31m 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 kr.576 is still below the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Gubra

The Last 12 Months Of Insider Transactions At Gubra

The Chief Executive Officer, Henrik Blou, made the biggest insider sale in the last 12 months. That single transaction was for kr.31m worth of shares at a price of kr.576 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of kr.433. So it is hard to draw any strong conclusion from it. Henrik Blou was the only individual insider to sell over the last year.

The chart below shows insider transactions (by companies and individuals) over the last year. 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: Most of them are flying under the radar).

Insider Ownership Of Gubra

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Gubra insiders own 65% of the company, currently worth about kr.4.6b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Gubra Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Gubra shares in the last quarter. While we feel good about high insider ownership of Gubra, we can't say the same about the selling of shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Gubra. Case in point: We've spotted 2 warning signs for Gubra you should be aware of, and 1 of these can't be ignored.

But note: Gubra 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.