Insiders who sold Gullberg & Jansson AB (publ) (NGM:GJAB) earlier this year probably made the right call as market cap dropped by kr91m

By
Simply Wall St
Published
February 19, 2022
NGM:GJAB
Source: Shutterstock

Insiders at Gullberg & Jansson AB (publ) (NGM:GJAB) sold kr519k worth of stock at an average price of kr81.69 a share over the past year, making the most of their investment. The company’s market cap plunged by kr91m after price dropped by 12% last week but insiders were able to limit their loss to an extent.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Gullberg & Jansson

The Last 12 Months Of Insider Transactions At Gullberg & Jansson

Over the last year, we can see that the biggest insider sale was by the Chief Executive Officer, Peter Bäck, for kr519k worth of shares, at about kr82.07 per share. So what is clear is that an insider saw fit to sell at around the current price of kr75.40. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. Peter Bäck was the only individual insider to sell shares in the last twelve months.

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
NGM:GJAB Insider Trading Volume February 19th 2022

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Gullberg & Jansson

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Gullberg & Jansson insiders own 50% of the company, worth about kr327m. 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 Gullberg & Jansson Insiders?

The fact that there have been no Gullberg & Jansson insider transactions recently certainly doesn't bother us. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Gullberg & Jansson insiders selling. 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. Our analysis shows 3 warning signs for Gullberg & Jansson (1 is concerning!) and we strongly recommend you look at these before investing.

But note: Gullberg & Jansson 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, but not derivative transactions.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.