Selling kr8.7m worth of Desert Control AS (OB:DSRT) stock at high prices would have gotten insiders a handsome reward

Last week, Desert Control AS' (OB:DSRT) stock jumped 11%, but insiders who sold kr8.7m worth of stock in over the past year are likely to be in a better position. Selling at an average price of kr29.10, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

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 the opportunities and risks within the NO Chemicals industry.

Desert Control Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Co-founder & Director, Brage Johansen, sold kr4.5m worth of shares at a price of kr29.96 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place 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 kr19.56. So it may not shed much light on insider confidence at current levels. Brage Johansen was the only individual insider to sell shares in the last twelve months.

Brage Johansen sold a total of 300.00k shares over the year at an average price of kr29.10. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Desert Control better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership Of Desert Control

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Desert Control insiders own 43% of the company, worth about kr345m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Desert Control Tell Us?

The fact that there have been no Desert Control insider transactions recently certainly doesn't bother us. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Desert Control insiders selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 4 warning signs (2 are a bit unpleasant!) that you ought to be aware of before buying any shares in Desert Control.

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, but not derivative transactions.

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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.