Have Plejd Insiders Been Selling Stock?

We'd be surprised if Plejd AB (publ) (NGM:PLEJD) shareholders haven't noticed that the Chief Executive Officer, Babak Esfahani, recently sold kr1.1m worth of stock at kr380 per share. On the bright side, that sale was only 0.7% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for Plejd

Plejd Insider Transactions Over The Last Year

The Founder & Director, Erik Calissendorff, made the biggest insider sale in the last 12 months. That single transaction was for kr6.5m worth of shares at a price of kr189 each. So it's clear an insider wanted to take some cash off the table, even below the current price of kr379. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 8.8% of Erik Calissendorff's holding.

Happily, we note that in the last year insiders paid kr4.1m for 16.47k shares. On the other hand they divested 53.95k shares, for kr12m. Over the last year we saw more insider selling of Plejd shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does Plejd Boast High Insider Ownership?

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. Plejd insiders own about kr1.6b worth of shares (which is 38% of the company). 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 Does This Data Suggest About Plejd Insiders?

An insider hasn't bought Plejd stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that Plejd is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 2 warning signs for Plejd (of which 1 is a bit unpleasant!) you should know about.

But note: Plejd 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.