The CEO & Member of Executive Board of Topdanmark A/S (CPH:TOP), Peter Hermann, Just Sold 44% Of Their Holding

We'd be surprised if Topdanmark A/S (CPH:TOP) shareholders haven't noticed that the CEO & Member of Executive Board, Peter Hermann, recently sold kr.1.2m worth of stock at kr.353 per share. That sale was 44% of their holding, so it does make us raise an eyebrow.

Check out our latest analysis for Topdanmark

Topdanmark Insider Transactions Over The Last Year

In fact, the recent sale by Peter Hermann was the biggest sale of Topdanmark shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of kr.348. 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).

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From looking at our data, insiders own kr.6.9m worth of Topdanmark stock, about 0.02% of the company. We prefer to see high levels of insider ownership.

So What Do The Topdanmark Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. Insiders own relatively few shares in the company, and when you consider the sales, we're not particularly excited about the stock. So we're not rushing to buy, to say the least. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Topdanmark.

Of course Topdanmark 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, but not derivative transactions.

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.