Stock Analysis

Aalberts N.V.'s (AMS:AALB)) market cap declines to €4.2b but insiders who sold €900k stock were able to hedge their losses

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Over the past year, insiders sold €900k worth of Aalberts N.V. (AMS:AALB) stock at an average price of €48.00 per share allowing them to get the most out of their money. The company's market worth decreased by €158m over the past week after the stock price dropped 3.7%, although insiders were able to minimize their losses

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out the opportunities and risks within the XX Machinery industry.

Aalberts Insider Transactions Over The Last Year

The CEO & Member of the Management Board, Wim Pelsma, made the biggest insider sale in the last 12 months. That single transaction was for €721k worth of shares at a price of €48.05 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is €37.60. So it may not tell us anything about how insiders feel about the current share price. Notably Wim Pelsma was also the biggest buyer, having purchased €218k worth of shares.

All up, insiders sold more shares in Aalberts than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

ENXTAM:AALB Insider Trading Volume December 1st 2022

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

Insider Ownership Of Aalberts

Many investors like to check how much of a company is owned by 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's great to see that Aalberts insiders own 9.1% of the company, worth about €377m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Aalberts Insiders?

The fact that there have been no Aalberts insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Aalberts, we can't say the same about the selling of shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Aalberts has 2 warning signs and it would be unwise to ignore these.

But note: Aalberts 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, but not derivative transactions.

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