November 27, 2021

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Equinor CEO stock dump believed to be a ‘negative signal’ – E24

Executive Vice President Erin Rummelhoff sold nearly half of the stock following Equinor’s record-breaking result.

Interpreter within the signals: Director of Research and Analysis Geir Linløkken at Investtech.

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– It’s a huge amount. In this sense, this is a negative sign, says head of research Geir Linløkken at Investtech, a company that actively uses insider trading in its stock analysis.

Equinor Director Erin Rummelhoff sold more than 18,000 shares on Thursday, a sale of 3.9 million Norwegian kroner.

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When the so-called insiders of a company, usually the board of directors and management, buy or sell shares, it can give an indication of what those who should know the company better think about the company and stake in the future.

– Now there are many reasons why you should be aware of stocks, including advances on inheritance or just portfolio diversification. But it’s also possible that she sees the price as high in relation to the risk and that’s a good time to sell, Lenlocken says.

Investtech investigated the impact of insider trading and found that there is a connection between such trading and price development.

The volume of trade relative to the total insider contribution can also matter.

Weak reporting

Equinor did not say how many shares the executive vice president had left in the announcement Thursday.

– There is a weakness in the reports. This is information that investors can benefit from that Equinor does not disclose, says Linløkken.

In Equinor’s 2020 annual report, it was reported that the top of the group owned just over 40,000 shares at the end of last year. Holding increased by 1,267 shares this summer, according to the stock exchange announcement.

Based on these numbers, Rummelhoff sold just under half of the stock.

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Equinor doubles profit in the third quarter

Linløkken adds that the insider trading picture is accurate, and points to insider purchases from two board members the day before the sale.

Purchases from board members on Wednesday totaled just over NOK 1.1 million, and were made after Equinor reported a record NOK 81.7 billion.

– These are positive signs, Lenleukin believes.

Rummelhoff leads the group’s area of ​​Marketing, Midstream and Processing (MMP). The department achieved strong quarterly results after the gains made by derivatives related to gas sales in the quarter, but it also announced that gains will be followed by losses in the coming period.

Take the wish with us

Equinor spokeswoman Rikke Høistad Sjøberg notes that three insiders have bought and sold one according to the quarterly result, and this has been reported in the usual manner.

It also says Equinor’s shareholder book is open, one Which access is legal.

– but we take with us the desire to include more. We can evaluate it.

When asked about the reason for selling and the effect of the stock trading signal, Sjøberg answered the following:

– We do not have any comments on buying or selling.

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