How Much Are Polygiene AB (publ.) (STO:POLYG) Insiders Taking Off The Table?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Polygiene AB (publ.) (STO:POLYG).

What Is Insider Selling?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

View our latest analysis for Polygiene AB (publ.)

The Last 12 Months Of Insider Transactions At Polygiene AB (publ.)

Over the last year, we can see that the biggest insider sale was by the insider, Mats Georgson, for kr7.5m worth of shares, at about kr25.00 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of kr30.60. 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. 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. We note that the biggest single sale was only 40% of Mats Georgson's holding.

Happily, we note that in the last year insiders paid kr2.5m for 219.72k shares. But they sold 355.00k shares for kr8.8m. Over the last year we saw more insider selling of Polygiene AB (publ.) shares, than buying. The sellers received a price of around kr24.69, on average. It's not particularly great to see insiders were selling shares at below recent prices. But we wouldn't put too much weight on the insider selling. 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!

I will like Polygiene AB (publ.) better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insiders at Polygiene AB (publ.) Have Bought Stock Recently

Over the last quarter, Polygiene AB (publ.) insiders have spent a meaningful amount on shares. Independent Director Håkan Lagerberg spent kr742k on stock, and there wasn't any selling. This makes one think the business has some good points.

Does Polygiene AB (publ.) Boast High 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. Polygiene AB (publ.) insiders own about kr183m worth of shares. That equates to 24% of the company. 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 Do The Polygiene AB (publ.) Insider Transactions Indicate?

It is good to see the recent insider purchase. However, the longer term transactions are not so encouraging. The high levels of insider ownership, and the recent buying by an insider suggests they are well aligned and optimistic. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 3 warning signs with Polygiene AB (publ.) and understanding these should be part of your investment process.

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, but not derivative transactions.

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