Have EQT Insiders Been Selling Stock?

Some EQT AB (publ) (STO:EQT) shareholders may be a little concerned to see that insider Edward Fitzgerald recently sold a substantial kr121m worth of stock at a price of kr345 per share. However, that sale only accounted for 2.0% of their holding, so arguably it doesn't say much about their conviction.

Check out our latest analysis for EQT

The Last 12 Months Of Insider Transactions At EQT

The Head of Real Assets' Advisory Teams, Lennart Blecher, made the biggest insider sale in the last 12 months. That single transaction was for kr148m worth of shares at a price of kr296 each. So it's clear an insider wanted to take some cash off the table, even below the current price of kr315. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 1.8% of Lennart Blecher's stake.

Happily, we note that in the last year insiders paid kr1.3m for 3.75k shares. On the other hand they divested 1.68m shares, for kr491m. All up, insiders sold more shares in EQT 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like EQT 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.

Does EQT Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. EQT insiders own 31% of the company, currently worth about kr115b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At EQT Tell Us?

Unfortunately, there has been more insider selling of EQT stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But since EQT is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of EQT.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com