Insiders Sold Fisker Prematurely At US$5.93 With Stock Trading Higher

Simply Wall St ·  Feb 21 08:11

Despite the fact that Fisker Inc.'s (NYSE:FSR) value has dropped 16% in the last week insiders who sold US$61k worth of stock in the past 12 months have had less success. Given that the average selling price of US$5.93 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.

Fisker Insider Transactions Over The Last Year

The insider, Burkhard Huhnke, made the biggest insider sale in the last 12 months. That single transaction was for US$61k worth of shares at a price of US$5.93 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$0.63). So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Burkhard Huhnke.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

NYSE:FSR Insider Trading Volume February 21st 2024

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Fisker

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It appears that Fisker insiders own 25% of the company, worth about US$85m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Fisker Insider Transactions Indicate?

The fact that there have been no Fisker insider transactions recently certainly doesn't bother us. Still, the insider transactions at Fisker in the last 12 months are not very heartening. The modest level of insider ownership is, at least, some comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Fisker. Every company has risks, and we've spotted 4 warning signs for Fisker (of which 1 can't be ignored!) you should know about.

Of course Fisker 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.

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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.

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