Shares of Salmon Evolution ASA (OB:SALME) rose 10% last week, but insiders who sold 3.9 million kr worth of shares in the past year are likely in a better position. Selling at an average price of 8.56 kr, which is higher than the current price, may have been the wisest move for these insiders, as their investment would have been worth less now than when sold.
While we don’t believe shareholders should simply follow insider trades, logic dictates that you pay attention to whether insiders are buying or selling shares.
See our latest review for Salmon Evolution
Insider trades on the evolution of salmon over the past year
In the past twelve months, the largest single insider sale occurred when CEO Hakon Berg sold 1.6 million kr worth of shares at a price of 8.58 kr per share. So what is clear is that an insider saw fit to sell around the current price of 8.38 kr. We usually don’t like insider selling, but the lower the selling price, the more we’re concerned about it. In this case, the big sell was around the current price, so that’s not too bad (but still not a positive).
In the last twelve months, insiders bought 253.26k shares for 2.2 million kr. On the other hand, they sold 450,000 shares, for 3.9 million kr. Over the past year, we have seen more insider selling of Salmon Evolution stock than buying. The chart below shows insider trading (by companies and individuals) over the past year. If you want to know exactly who sold, how much and when, just click on the chart below!
I’d like Salmon Evolution better if I see big insider buys. In the meantime, watch this free list of growing companies with significant and recent insider buying.
Does Salmon Evolution boast of high insider ownership?
For an ordinary shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely insiders will be incentivized to build the business for the long term. It appears that Salmon Evolution insiders own 8.8% of the company, worth around 255 million kr. While this is a high but not exceptional level of insider ownership, it suffices to indicate some alignment between management and small shareholders.
What could insider trading at Salmon Evolution tell us?
The fact that there have been no Salmon Evolution insider trades recently certainly doesn’t bother us. It’s encouraging to see that insiders own a lot of stocks, but we’d like to see more insider buying, as the past year of insider trading in Salmon Evolution doesn’t fill us with confidence. While we like to know what’s going on with insider ownership and trading, we also make sure to consider the risks a stock faces before making any investment decisions. Be aware that Salmon Evolution displays 3 warning signs in our investment analysisand 1 of them is significant…
Sure Salmon Evolution may not be the best stock to buy. So you might want to see this free set of high quality companies.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.