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Have Insiders Been Selling G5 Entertainment AB (publ) (STO:G5EN) Shares?

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We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in G5 Entertainment AB (publ) (STO:G5EN).

What Is Insider Selling?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, such insiders must disclose their trading activities, and not trade on inside information.

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Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'

Check out our latest analysis for G5 Entertainment

G5 Entertainment Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Co-Founder, Vladislav Suglobov, for kr1.4m worth of shares, at about kr139 per share. While we don't usually like to see insider selling, it's more concerning if the sales take price at a lower price. The silver lining is that this sell-down took place above the latest price (kr85.30). So it may not shed much light on insider confidence at current levels. Vladislav Suglobov was the only individual insider to sell shares in the last twelve months.

Happily, we note that in the last year insiders paid kr728k for 4700 shares. But they sold 10000 for kr1.4m. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

OM:G5EN Recent Insider Trading, June 16th 2019
OM:G5EN Recent Insider Trading, June 16th 2019

I will like G5 Entertainment better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of G5 Entertainment

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that G5 Entertainment insiders own 6.8% of the company, worth about kr52m. However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About G5 Entertainment Insiders?

The fact that there have been no G5 Entertainment insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by G5 Entertainment insiders. But we do like the fact that insiders own a fair chunk of the company. Of course, the future is what matters most. So if you are interested in G5 Entertainment, you should check out this free report on analyst forecasts for the company.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.