Don't Ignore The Fact That This Insider Just Sold Some Shares In Elliptic Laboratories AS (OB:ELABS)

By
Simply Wall St
Published
September 12, 2021
OB:ELABS
Source: Shutterstock

We wouldn't blame Elliptic Laboratories AS (OB:ELABS) shareholders if they were a little worried about the fact that Laila Danielsen, the CEO & President recently netted about kr15m selling shares at an average price of kr223. That's a big disposal, and it decreased their holding size by 13%, which is notable but not too bad.

Check out our latest analysis for Elliptic Laboratories

The Last 12 Months Of Insider Transactions At Elliptic Laboratories

Notably, that recent sale by Laila Danielsen is the biggest insider sale of Elliptic Laboratories shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (kr233). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 13%of Laila Danielsen's holding.

Over the last year, we can see that insiders have bought 35.87k shares worth kr8.0m. But they sold 71.75k shares for kr16m. In total, Elliptic Laboratories insiders sold more 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. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
OB:ELABS Insider Trading Volume September 13th 2021

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Elliptic Laboratories

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 36% of Elliptic Laboratories shares, worth about kr864m. 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 Elliptic Laboratories Tell Us?

The insider sales have outweighed the insider buying, at Elliptic Laboratories, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. 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 Elliptic Laboratories. Case in point: We've spotted 3 warning signs for Elliptic Laboratories you should be aware of.

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, but not derivative transactions.

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