Trade Alert: Director Of Alligo Johan Sjo Has Sold Stock

Anyone interested in Alligo AB (publ) (STO:ALLIGO B) should probably be aware that the Director, Johan Sjo, recently divested kr2.7m worth of shares in the company, at an average price of kr140 each. Equally important, that sale actually reduced their holding by a full 71% which hardly makes us feel bullish about the stock.

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The Last 12 Months Of Insider Transactions At Alligo

Notably, that recent sale by Johan Sjo is the biggest insider sale of Alligo 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 kr142. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 71% of Johan Sjo's stake.

Over the last year, we can see that insiders have bought 21.85k shares worth kr2.8m. But they sold 21.18k shares for kr3.0m. In total, Alligo insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Alligo

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Alligo insiders own about kr180m worth of shares. That equates to 2.5% 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 Alligo Insider Transactions Indicate?

An insider sold Alligo shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Alligo. For example - Alligo has 3 warning signs we think you should be aware of.

But note: Alligo 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.