Possible Signal As Reka Industrial Oyj Insiders Sell €882k In Stock

Last week, Reka Industrial Oyj's (HEL:REKA) stock jumped 11%, but insiders who sold €882k worth of stock in over the past year are likely to be in a better position. Selling at an average price of €7.22, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Reka Industrial Oyj

Reka Industrial Oyj Insider Transactions Over The Last Year

The insider, Ville Tolvanen, made the biggest insider sale in the last 12 months. That single transaction was for €502k worth of shares at a price of €7.34 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 silver lining is that this sell-down took place above the latest price (€4.90). So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Ville Tolvanen.

Ville Tolvanen ditched 122.18k shares over the year. The average price per share was €7.22. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership Of Reka Industrial Oyj

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests Reka Industrial Oyj insiders own 1.8% of the company, worth about €520k. I generally like to see higher levels of ownership.

What Might The Insider Transactions At Reka Industrial Oyj Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. The insider transactions at Reka Industrial Oyj are not inspiring us to buy. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Reka Industrial Oyj. For instance, we've identified 2 warning signs for Reka Industrial Oyj (1 shouldn't be ignored) 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.