Don't Ignore The Insider Selling In SmartCraft

We wouldn't blame SmartCraft ASA (OB:SMCRT) shareholders if they were a little worried about the fact that Bernt Ulstein, the Independent Board Member recently netted about kr18m selling shares at an average price of kr31.69. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 5.0%.

Check out our latest analysis for SmartCraft

The Last 12 Months Of Insider Transactions At SmartCraft

In fact, the recent sale by Bernt Ulstein was the biggest sale of SmartCraft shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of kr31.60. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

In the last twelve months insiders purchased 127.08k shares for kr3.4m. But they sold 930.00k shares for kr28m. Over the last year we saw more insider selling of SmartCraft shares, than buying. 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!

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

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. We usually like to see fairly high levels of insider ownership. It appears that SmartCraft insiders own 8.9% of the company, worth about kr473m. 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 Do The SmartCraft Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since SmartCraft is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - SmartCraft has 1 warning sign we think you should be aware of.

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.