Chief Financial Officer Yilmaz Mahshid Sold A Bunch Of Shares In Egetis Therapeutics

We'd be surprised if Egetis Therapeutics AB (publ) (STO:EGTX) shareholders haven't noticed that the Chief Financial Officer, Yilmaz Mahshid, recently sold kr1.4m worth of stock at kr6.72 per share. Equally important, that sale actually reduced their holding by a full 68% which hardly makes us feel bullish about the stock.

View our latest analysis for Egetis Therapeutics

Egetis Therapeutics Insider Transactions Over The Last Year

Notably, that recent sale by Yilmaz Mahshid is the biggest insider sale of Egetis Therapeutics shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of kr6.30. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Over the last year, we can see that insiders have bought 91.14k shares worth kr391k. But insiders sold 213.09k shares worth kr1.4m. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Does Egetis Therapeutics Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 13% of Egetis Therapeutics shares, worth about kr303m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Egetis Therapeutics Insider Transactions Indicate?

The stark truth for Egetis Therapeutics 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. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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 that end, you should learn about the 4 warning signs we've spotted with Egetis Therapeutics (including 1 which makes us a bit uncomfortable).

But note: Egetis Therapeutics 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.