Insiders At Verkkokauppa.com Oyj Sold €5.0m Of Stock Potentially Indicating Weakness

Verkkokauppa.com Oyj's (HEL:VERK) stock rose 12% last week, but insiders who sold €5.0m worth of stock over the last year are probably in a more advantageous position. Selling at an average price of €2.31, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.

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.

See our latest analysis for Verkkokauppa.com Oyj

Verkkokauppa.com Oyj Insider Transactions Over The Last Year

The Founder & Director, Sipi Seppälä, made the biggest insider sale in the last 12 months. That single transaction was for €4.4m worth of shares at a price of €2.33 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is €1.50. So it may not tell us anything about how insiders feel about the current share price. Sipi Seppälä was the only individual insider to sell shares in the last twelve months.

Sipi Seppälä sold a total of 2.18m shares over the year at an average price of €2.31. 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!

I will like Verkkokauppa.com Oyj better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Verkkokauppa.com Oyj

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Verkkokauppa.com Oyj insiders own about €22m worth of shares. That equates to 32% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Verkkokauppa.com Oyj Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. We don't take much encouragement from the transactions by Verkkokauppa.com Oyj insiders. But it's good to see that insiders own shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Verkkokauppa.com Oyj. Every company has risks, and we've spotted 1 warning sign for Verkkokauppa.com Oyj you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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