Group Chief Executive Officer Of FLSmidth Sold 89% Of Their Shares

Some FLSmidth & Co. A/S (CPH:FLS) shareholders may be a little concerned to see that the Group Chief Executive Officer, Mikko Keto, recently sold a substantial kr.8.5m worth of stock at a price of kr.409 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 89% of their entire holding.

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The Last 12 Months Of Insider Transactions At FLSmidth

Notably, that recent sale by Mikko Keto is the biggest insider sale of FLSmidth shares that we've seen in the last year. That means that an insider was selling shares at around the current price of kr.407. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Mikko Keto ditched 40.88k shares over the year. The average price per share was kr.401. 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!

View our latest analysis for FLSmidth

I will like FLSmidth better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does FLSmidth Boast High Insider Ownership?

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our information indicates that FLSmidth insiders own about -kr.174m worth of shares. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.

What Might The Insider Transactions At FLSmidth Tell Us?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. But since FLSmidth is profitable and growing, we're not too worried by this. When you combine this with the relatively low insider ownership, we are very cautious about the stock. We'd certainly practice some caution before buying! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 2 warning signs for FLSmidth you should know about.

Of course FLSmidth 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.