Varta insider sales cause unrest

Varta insider sales cause unrest

The insider sale of Varta shares by the CEO Dr. Markus Hackstein has caused unrest among online investor forums. The company's announcement of Hackstein's sale, worth around 25,000 euros, followed shortly after the announcement of an updated and stricter restructuring concept. Hackstein's sale took place at a time when the Varta share price was still almost 14 euros. Investors were then confronted with a drastic price loss of around 40 percent, with the price falling to just under eight euros a week later.

Although insider trading is not legally illegal, such transactions must be reported. However, experts like Sascha Gebhard from the financial market analysis and trading platform stock3.com see such processes as an ethical gray area. The exposure and valuation of the content that a board member like Hackstein might have before the sale could lead to a possible insider advantage. After a similar insider trading case in November 2023, in which Chief Technology Officer Rainer Hald sold Varta shares worth 300,000 euros, the question of possible regulatory gaps is raised.

Varta AG recently announced that it would intensify its cost-cutting measures due to the current economic situation. This update of the restructuring measures and corporate strategy became necessary because the previous measures no longer seemed adequate. A reduction of 800 jobs worldwide has already been announced in 2023. It currently remains unclear how many more positions will be affected by the new restructuring report and when a new concept can be expected.