SES AI Insider’s purchases have yet to be paid off regardless of recent strength

Insiders who bought $399,000 worth SES AI (New York Stock Exchange: SESLast year, the stock made up for some of its losses as the stock rose 16% last week. However, the purchase proved to be an expensive bet, with losses currently totaling $168,000.

While we don’t think shareholders should simply follow insider transactions, logic dictates that you pay attention to whether insiders are buying or selling shares.

Check out our latest analysis of SES AI

SES AI insider transactions over the past year

Independent director Robert Martin Friedland has made the largest insider purchase in the last 12 months. That one deal was worth $303,000 in shares at $7.57 per share. This means that the insider was happy to buy the shares at a price above the current price of $3.55. Although their view has changed since making the purchase, this at least indicates that they have confidence in the company’s future. We always factor in the price insiders pay when buying stocks. Generally, it catches our eye when insiders buy stocks at prices above current prices, as it indicates that they believe the shares are worth buying, even at a higher price.

In the past 12 months, people working at SES AI have been buying shares, but not selling. The average purchase price was about $6.13 USD. These transactions indicate that insiders have deemed the current price attractive. You can see the internal transactions (by companies and individuals) over the past year as shown in the chart below. If you want to know exactly who sold for how much and when, just click on the chart below!

Insider trading volume
NYSE: SES Insider Volume January 15, 2023

There is always a lot of stock insiders are buying. So if this suits your style, you can check out each stock one by one or you can take a look at this one Free List of companies. (Hint: Insiders buy it.)

Does SES AI boast high insider ownership?

Looking at a company’s total insider shares can help tell you whether you think it aligns well with common shareholders. Typically, the higher the inside ownership, the more likely the insiders will be motivated to build the company over the long term. SES AI employees own $152 million worth of equity (12% of the company). Most shareholders would be happy to see this kind of internal ownership, because it indicates that management’s incentives align well with other shareholders.

What might the SES AI insider transactions tell us?

There haven’t been any insider transactions in the last three months – which doesn’t mean much. On a brighter note, transactions over the past year have been encouraging. It would be nice to see more insider buying, but overall SES AI insiders seem reasonably cooperative (they own a large portion of the company’s stock) and optimistic about the future. So while it’s helpful to know what insiders are doing in terms of buying or selling, it’s also helpful to know the risks a particular company faces. Be careful that SES AI is shown 4 warning signs in our investment analysisand 2 of those make us uncomfortable…

of course, You may find a great investment by looking elsewhere. So take a peek at this Free List of interesting companies.

For the purposes of this article, insiders are individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and own disposals, but not derivative transactions.

What are the risks and opportunities SES AI?

SES AI is engaged in the development and production of high-performance rechargeable lithium-metal batteries for electric vehicles and other applications.

View the full analysis

Risks

  • Earnings are expected to decline at an average of 33.1% annually over the next three years

  • Makes less than $1 million ($0 USD)

  • The volatile share price over the past three months

  • It is currently unprofitable and is not expected to become profitable within the next three years

View all risks and rewards

This article written by Simply Wall St is general in nature. We provide comments based on historical data and analyst predictions only using an unbiased methodology and our articles are not intended as financial advice. It does not constitute a recommendation to buy or sell any stock, and it does not take into account your objectives or financial situation. We aim to provide you with focused, long-term analysis driven by fundamental data. Note that our analysis may not include the company’s most recent price-sensitive announcements or specific materials. Wall Street simply has no position in any of the stocks mentioned.

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