Group CEO Of North Media Sold 100% Of Their Shares

Anyone interested in North Media A/S (CPH:NORTHM) should probably be aware that the Group CEO, Lasse Brodt, recently divested kr.1.7m worth of shares in the company, at an average price of kr.64.08 each. Equally important, that sale actually reduced their holding by a full 100% which hardly makes us feel bullish about the stock.

View our latest analysis for North Media

The Last 12 Months Of Insider Transactions At North Media

The Group Chief Financial Officer & Member of Executive Board, Kare Wigh, made the biggest insider sale in the last 12 months. That single transaction was for kr.3.1m worth of shares at a price of kr.58.11 each. That means that an insider was selling shares at slightly below the current price (kr.64.20). 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. It is worth noting that this sale was only 35% of Kare Wigh's holding.

Insiders in North Media didn't buy any shares in 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!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership Of North Media

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. North Media insiders own 64% of the company, currently worth about kr.740m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The North Media Insider Transactions Indicate?

An insider hasn't bought North Media stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But since North Media is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 4 warning signs for North Media (2 don't sit too well with us) you should be aware of.

But note: North Media may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.