Stock Analysis

Insiders at Carlsberg A/S (CPH:CARL B) sold kr.4.9m worth of stock, possibly indicating weakness in the future

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Over the past year, many Carlsberg A/S (CPH:CARL B) insiders sold a significant stake in the company which may have piqued investors' interest. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, if numerous insiders are selling, shareholders should investigate more.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out the opportunities and risks within the XX Beverage industry.

Carlsberg Insider Transactions Over The Last Year

The CFO & Member of Executive Board, Heine Dalsgaard, made the biggest insider sale in the last 12 months. That single transaction was for kr.4.9m worth of shares at a price of kr.989 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of kr.895. So it is hard to draw any strong conclusion from it.

Insiders in Carlsberg didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
CPSE:CARL B Insider Trading Volume December 2nd 2022

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Carlsberg

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.03% of Carlsberg shares, worth about kr.46m, according to our data. We do generally prefer see higher levels of insider ownership.

So What Do The Carlsberg Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. We don't take much encouragement from the transactions by Carlsberg insiders. But we do like the fact that insiders own a fair chunk of the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that Carlsberg has 1 warning sign and it would be unwise to ignore this.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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, but not derivative transactions.

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