Insiders Sold Ependion Prematurely At kr135 With Stock Trading Higher

Even though Ependion AB (STO:EPEN) has fallen by 12% over the past week , insiders who sold kr2.1m worth of stock over the past year have had less luck. Given that the average selling price of kr135 is still lower than the current share price, insiders would probably have been better off keeping their shares.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Ependion

The Last 12 Months Of Insider Transactions At Ependion

The Director, Johan Wester, made the biggest insider sale in the last 12 months. That single transaction was for kr1.6m worth of shares at a price of kr136 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is kr106. So it may not shed much light on insider confidence at current levels. Notably Johan Wester was also the biggest buyer, having purchased kr1.6m worth of shares.

In the last twelve months insiders purchased 11.50k shares for kr1.6m. On the other hand they divested 15.40k shares, for kr2.1m. In total, Ependion insiders sold more than they bought over the last year. 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!

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).

Insiders At Ependion Have Sold Stock Recently

The last three months saw some Ependion insider selling. In total, insiders sold kr444k worth of shares in that time. But at least we saw kr195k worth of buying. While it's not great to see insider selling, the net amount sold isn't enough for us to want to read anything into it.

Does Ependion 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. Based on our data, Ependion insiders have about 1.1% of the stock, worth approximately kr33m. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About Ependion Insiders?

Unfortunately, there has been more insider selling of Ependion stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - Ependion has 1 warning sign we think you should be aware of.

Of course Ependion 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 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