This Insider Has Just Sold Shares In Trifork Group

Some Trifork Group AG (CPH:TRIFOR) shareholders may be a little concerned to see that the Founder & CEO, Jorn Larsen, recently sold a substantial kr.5.0m worth of stock at a price of kr.83.55 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 1.6%.

See our latest analysis for Trifork Group

The Last 12 Months Of Insider Transactions At Trifork Group

In fact, the recent sale by Founder & CEO Jorn Larsen was not their only sale of Trifork Group shares this year. They previously made an even bigger sale of -kr.13m worth of shares at a price of kr.128 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of kr.80.20. So it may not shed much light on insider confidence at current levels.

In the last twelve months insiders purchased 8.04k shares for kr.775k. But insiders sold 160.00k shares worth kr.18m. Jorn Larsen sold a total of 160.00k shares over the year at an average price of €111. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Trifork Group better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Trifork Group

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. It appears that Trifork Group insiders own 28% of the company, worth about kr.432m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Trifork Group Insider Transactions Indicate?

An insider hasn't bought Trifork Group stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. But since Trifork Group is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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 example - Trifork Group has 2 warning signs we think you should be aware of.

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 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.