Don't Ignore The Insider Selling In Kemira Oyj

We'd be surprised if Kemira Oyj (HEL:KEMIRA) shareholders haven't noticed that the Executive VP of Operational Excellence & Sustainability and Member of Management Board, Esa-Matti Puputti, recently sold €348k worth of stock at €23.18 per share. The eyebrow raising move amounted to a reduction of 25% in their holding.

See our latest analysis for Kemira Oyj

The Last 12 Months Of Insider Transactions At Kemira Oyj

Notably, that recent sale by Esa-Matti Puputti is the biggest insider sale of Kemira Oyj shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of €23.48. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 25% of Esa-Matti Puputti's holding.

Kemira Oyj insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership Of Kemira Oyj

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. It appears that Kemira Oyj insiders own 2.2% of the company, worth about €80m. 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 Kemira Oyj Insiders?

Insiders haven't bought Kemira Oyj stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 1 warning sign for Kemira Oyj you should know about.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com