Chief Executive Officer Gregers Wedell-Wedellsborg Sold A Bunch Of Shares In Matas

We wouldn't blame Matas A/S (CPH:MATAS) shareholders if they were a little worried about the fact that Gregers Wedell-Wedellsborg, the Chief Executive Officer recently netted about kr.13m selling shares at an average price of kr.132. That sale reduced their total holding by 42% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for Matas

The Last 12 Months Of Insider Transactions At Matas

Notably, that recent sale by Gregers Wedell-Wedellsborg is the biggest insider sale of Matas shares that we've seen in the last year. That means that even when the share price was slightly below the current price of kr.132, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 42% of Gregers Wedell-Wedellsborg's stake.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

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. We usually like to see fairly high levels of insider ownership. From our data, it seems that Matas insiders own 0.9% of the company, worth about kr.44m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Matas Insiders?

The stark truth for Matas is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Matas. Every company has risks, and we've spotted 4 warning signs for Matas (of which 1 makes us a bit uncomfortable!) you should know about.

Of course Matas 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 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.