Calliditas Therapeutics AB (publ) (STO:CALTX) insiders who sold earlier this year missed out on a 35% increase in the stock last week

While Calliditas Therapeutics AB (publ) (STO:CALTX) shareholders have had a good week with the stock up 35%, they shouldn't let their guards down. The fact that insiders chose to dispose of kr532k worth of stock in the past 12 months even though prices were relatively low could be indicative of some anticipated weakness.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Calliditas Therapeutics

The Last 12 Months Of Insider Transactions At Calliditas Therapeutics

Over the last year, we can see that the biggest insider sale was by the insider, Frank Bringstrup, for kr532k worth of shares, at about kr96.80 per share. That means that even when the share price was below the current price of kr127, an insider wanted to cash in some shares. 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. We note that the biggest single sale was only 41% of Frank Bringstrup's holding. Frank Bringstrup was the only individual insider to sell over the last year.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insiders At Calliditas Therapeutics Have Sold Stock Recently

The last quarter saw substantial insider selling of Calliditas Therapeutics shares. In total, insider Frank Bringstrup dumped kr532k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Calliditas Therapeutics insiders own 11% of the company, worth about kr859m. 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 Calliditas Therapeutics Insiders?

An insider sold Calliditas Therapeutics shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While we like knowing 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. At Simply Wall St, we found 3 warning signs for Calliditas Therapeutics that deserve your attention before buying any shares.

Of course Calliditas Therapeutics may not be the best stock to buy. So you may wish to see this free collection of high quality 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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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.