Flex LNG - Mandatory notification of trade by PDMR

Rhea-AI Summary

Flex LNG (FLNG) has reported mandatory notifications of trade by persons discharging managerial responsibilities (PDMR). CEO Øystein Kalleklev exercised 100,000 options and sold 100,000 shares on the New York Stock Exchange at an average price of USD 26.65 per share on September 18th and 19th, 2024. After the sale, Kalleklev retains ownership of 50,000 common shares.

CFO Knut Traaholt also exercised 48,000 options and sold 48,000 shares at the same average price during the same period. The company has disclosed this information in compliance with Article 19 of the Market Abuse Regulation and section 5-12 of the Norwegian Securities Trading Act.

Positive

• Insider stock sales at a price of USD 26.65 per share, indicating potential market value

Negative

• Significant insider selling by CEO and CFO may signal lack of confidence in future stock performance

Insights

Financial Analyst

This insider trading activity at Flex LNG reveals interesting insights. CEO Øystein Kalleklev exercised 100,000 options and sold the resulting shares at $26.65 per share, netting approximately $2.67 million. Similarly, CFO Knut Traaholt exercised 48,000 options and sold at the same price, realizing about $1.28 million. While insider sales can sometimes signal a lack of confidence, it's important to note that executives often sell shares for personal financial planning. The fact that Kalleklev retains 50,000 shares post-sale indicates he maintains a stake in the company's future. The option exercise price isn't disclosed, making it difficult to gauge the executives' profit margins. However, the $26.65 share price suggests the market values Flex LNG positively. Investors should monitor future insider transactions and company performance to better understand these sales' implications.

Legal Expert

This mandatory notification of trade by Persons Discharging Managerial Responsibilities (PDMRs) demonstrates Flex LNG's compliance with Article 19 of the Market Abuse Regulation and section 5-12 of the Norwegian Securities Trading Act. Such transparency is important for maintaining market integrity and investor confidence. The prompt disclosure, including details of the transactions and the remaining shareholding of the CEO, aligns with best practices in corporate governance. It's worth noting that the company has made the notification publicly available and provided contact information for further inquiries, which enhances transparency. However, investors should be aware that while this disclosure is legally required, it doesn't necessarily indicate any significant change in the company's prospects or strategy. The timing and volume of these trades might be worth analyzing in the context of the company's recent performance and future outlook.

Market Research Analyst

The insider trading activity at Flex LNG provides valuable market signals. The sale price of $26.65 per share offers a benchmark for the stock's current valuation. With both the CEO and CFO exercising options and immediately selling, it could suggest they believe the stock is fairly valued or potentially overvalued at current levels. However, it's important to consider that these sales might be part of pre-planned trading programs or personal financial strategies rather than a reflection on the company's prospects. The LNG shipping market has been volatile and Flex LNG's stock performance should be viewed in this context. Investors should analyze this insider activity alongside other factors such as the company's financial performance, industry trends in LNG demand and broader market conditions. The retention of 50,000 shares by the CEO indicates some continued alignment with shareholder interests, which is a positive sign amidst the significant sale.

HAMILTON, Bermuda, Sept. 20, 2024 /PRNewswire/ -- Flex LNG Ltd. (the "Company") has received trade notifications from the following persons discharging managerial responsibilities ("PDMR"):

Øystein Kalleklev, CEO of Flex LNG Management AS, has in the period September 18^th and September 19^th, 2024 exercised 100,000 options and subsequently sold 100,000 shares on New York Stock Exchange for an average price of approx. USD 26.65 per share. Following the sale, Mr. Kalleklev owns 50,000 common shares.

Knut Traaholt, CFO of Flex LNG Management AS, has in the period September 18^th and September 19^th, 2024 exercised 48,000 options and subsequently sold 48,000 shares on New York Stock Exchange for an average price of approx. USD 26.65 per share.

Please find further details in the attached forms.

This notification has been publicly disclosed in accordance with Article 19 of the Market Abuse Regulation section 5-12 of the Norwegian Securities Trading Act.

For questions, please contact:
Knut Traaholt, Chief Financial Officer of Flex LNG Management AS
Email: IR@flexlng.com

This information was brought to you by Cision http://news.cision.com.

https://news.cision.com/flex-lng/r/flex-lng---mandatory-notification-of-trade-by-pdmr,c4040696

The following files are available for download:

https://mb.cision.com/Main/22886/4040696/3012369.pdf

Mandatory notification of trade - Appendix

 

View original content:https://www.prnewswire.com/news-releases/flex-lng---mandatory-notification-of-trade-by-pdmr-302254254.html

SOURCE Flex LNG

FAQ

How many shares did Flex LNG CEO Øystein Kalleklev sell in September 2024?

Flex LNG CEO Øystein Kalleklev sold 100,000 shares on September 18th and 19th, 2024.

What was the average selling price of FLNG shares in the reported insider trades?

The average selling price of FLNG shares in the reported insider trades was approximately USD 26.65 per share.

How many options did Flex LNG CFO Knut Traaholt exercise in September 2024?

Flex LNG CFO Knut Traaholt exercised 48,000 options in September 2024.

How many common shares does Øystein Kalleklev own after the reported sale?

After the reported sale, Øystein Kalleklev owns 50,000 common shares of Flex LNG.