Trade Alert: Director Of Reka Industrial Oyj Ville Tolvanen Has Sold Stock

We'd be surprised if Reka Industrial Oyj (HEL:REKA) shareholders haven't noticed that the Director, Ville Tolvanen, recently sold €380k worth of stock at €7.10 per share. That sale was 44% of their holding, so it does make us raise an eyebrow.

View our latest analysis for Reka Industrial Oyj

The Last 12 Months Of Insider Transactions At Reka Industrial Oyj

In fact, the recent sale by Ville Tolvanen was the biggest sale of Reka Industrial Oyj shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (€7.54). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 44%of Ville Tolvanen's holding.

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

Does Reka Industrial Oyj Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company 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. Based on our data, Reka Industrial Oyj insiders have about 4.6% of the stock, worth approximately €2.1m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We consider this fairly low insider ownership.

So What Does This Data Suggest About Reka Industrial Oyj Insiders?

An insider sold Reka Industrial Oyj shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But it is good to see that Reka Industrial Oyj is growing earnings. Insiders own relatively few shares in the company, and when you consider the sales, we're not particularly excited about the stock. We'd certainly practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Reka Industrial Oyj. In terms of investment risks, we've identified 5 warning signs with Reka Industrial Oyj and understanding them should be part of your investment process.

But note: Reka Industrial Oyj 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.

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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.