CEO & Executive Director Of Iveco Group Sold 41% Of Their Shares

Some Iveco Group N.V. (BIT:IVG) shareholders may be a little concerned to see that the CEO & Executive Director, Gerrit Marx, recently sold a substantial €6.8m worth of stock at a price of €11.56 per share. That sale reduced their total holding by 41% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for Iveco Group

The Last 12 Months Of Insider Transactions At Iveco Group

Notably, that recent sale by Gerrit Marx is the biggest insider sale of Iveco Group shares that we've seen in the last year. That means that even when the share price was below the current price of €12.09, an insider wanted to cash in some shares. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 41% of Gerrit Marx's holding.

Happily, we note that in the last year insiders paid €346k for 46.15k shares. On the other hand they divested 611.06k shares, for €7.0m. Gerrit Marx ditched 611.06k shares over the year. The average price per share was €11.39. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Iveco Group insiders own 0.6% of the company, worth about €20m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Iveco Group Insiders?

Unfortunately, there has been more insider selling of Iveco Group stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that Iveco Group is growing earnings. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 2 warning signs for Iveco Group (1 is a bit concerning!) and we strongly recommend you look at them before investing.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.