During the week, I decided that I would make a review on insider trading in the portfolio. It turned out that the majority of the insider transactions was part of the preferential rights issues. This goes for A1M Pharma, BrainCool and Cantargia or as part of an options programme (Phase Holographic). In AroCell and Fortnox, newly appointed managers bought a number of shares.
Only in one company, a number of managers have bought shares. This is Recyctec. During May the CEO, the sales manager, the (former) marketing manager, and the maintenance manager bought shares. The total number was a little more than 50,000 shares at a price of 120,000 SEK. The average daily turnover in 2017 so far have been 180,000 SEK in comparison.
On-one sold in 2017
Often investors take the buying or selling from insiders – or in-sighters as some say – as signs of the management’s confidence in their own company. In the case of Recyctec the market and the investors clearly does not share the optimism of the management. Since mid-May, the share price is down 25-30 %.
There is one thing that struck me as I made this – there are no sales from insiders the past 6 months. Except for the chairman of the board in Phase Holographic, who sold to finance buy of new shares from the options programme, no-one sold.
Check insider transactions
It is fairly easy to check inside transactions in Sweden. On the web-page of Finansinspektionen there online access to the PDMR transactions register. PDMR stand for Persons Discharging Managerial Responsibilities. You can find it here.
Note that if you want to search the page is in Swedish. It is simple; just write the company name in the top line and press ‘Sök’ (Search).