Favourable Signals For Nilfisk Holding: Numerous Insiders Acquired Stock

Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Nilfisk Holding A/S (CPH:NLFSK), that sends out a positive message to the company's shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Nilfisk Holding

The Last 12 Months Of Insider Transactions At Nilfisk Holding

Over the last year, we can see that the biggest insider purchase was by Director Rene Svendsen-Tune for kr.762k worth of shares, at about kr.127 per share. That means that an insider was happy to buy shares at around the current price of kr.132. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Nilfisk Holding insiders decided to buy shares at close to current prices.

In the last twelve months insiders purchased 11.99k shares for kr.1.6m. But insiders sold 4.02k shares worth kr.443k. In total, Nilfisk Holding insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insiders At Nilfisk Holding Have Bought Stock Recently

There was some insider buying at Nilfisk Holding over the last quarter. Independent Deputy Chairman Bengt Anders Thorsson shelled out kr.152k for shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Insider Ownership Of Nilfisk Holding

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Based on our data, Nilfisk Holding insiders have about 0.5% of the stock, worth approximately kr.17m. We consider this fairly low insider ownership.

So What Does This Data Suggest About Nilfisk Holding Insiders?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Nilfisk Holding we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Nilfisk Holding. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Nilfisk Holding.

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.

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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.