MT Højgaard Holding Insiders Make Handsome Sum Selling Stock At kr.207 Per Share

While MT Højgaard Holding A/S (CPH:MTHH) shareholders have enjoyed a good week with stock up 10%, they need remain vigilant. In spite of the relatively cheap prices, insiders made the decision to sell kr.721k worth of stock in the last 12 months. This could be a warning indicator of vulnerabilities in the future.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for MT Højgaard Holding

The Last 12 Months Of Insider Transactions At MT Højgaard Holding

Over the last year, we can see that the biggest insider sale was by the CEO, Group CFO & Member of the Executive Board, Rasmus Untidt, for kr.721k worth of shares, at about kr.207 per share. That means that even when the share price was below the current price of kr.318, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 100% of Rasmus Untidt's stake. The only individual insider seller over the last year was Rasmus Untidt.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like MT Højgaard Holding 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 MT Højgaard Holding Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own kr.22m worth of MT Højgaard Holding stock, about 0.9% of the company. We consider this fairly low insider ownership.

So What Do The MT Højgaard Holding Insider Transactions Indicate?

The fact that there have been no MT Højgaard Holding insider transactions recently certainly doesn't bother us. Still, the insider transactions at MT Højgaard Holding in the last 12 months are not very heartening. The modest level of insider ownership is, at least, some comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing MT Højgaard Holding. In terms of investment risks, we've identified 1 warning sign with MT Højgaard Holding and understanding this should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.