Have Insiders Sold Grangex Shares Recently?

We'd be surprised if Grangex AB (STO:GRANGX) shareholders haven't noticed that the CEO & President, Christer Lindqvist, recently sold kr2.1m worth of stock at kr42.65 per share. However, the silver lining is that the sale only reduced their total holding by 2.4%, so we're hesitant to read anything much into it, on its own.

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The Last 12 Months Of Insider Transactions At Grangex

Notably, that recent sale by Christer Lindqvist is the biggest insider sale of Grangex shares that we've seen in the last year. That means that even when the share price was below the current price of kr45.25, an insider wanted to cash in some shares. 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. 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 2.4% of Christer Lindqvist's holding.

Happily, we note that in the last year insiders paid kr143k for 7.50k shares. But insiders sold 65.38k shares worth kr2.4m. Christer Lindqvist ditched 65.38k shares over the year. The average price per share was kr36.86. 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!

See our latest analysis for Grangex

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 19% of Grangex shares, worth about kr122m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Grangex Insiders?

The stark truth for Grangex is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To help with this, we've discovered 6 warning signs (3 shouldn't be ignored!) that you ought to be aware of before buying any shares in Grangex.

But note: Grangex 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.