Kitron Chief Executive Officer of BB Electronics Carsten Christensen Sells 70% Of Holding

We'd be surprised if Kitron ASA (OB:KIT) shareholders haven't noticed that the Chief Executive Officer of BB Electronics, Carsten Christensen, recently sold kr1.4m worth of stock at kr37.36 per share. In particular, we note that the sale equated to a 70% reduction in their position size, which doesn't exactly instill confidence.

Check out our latest analysis for Kitron

Kitron Insider Transactions Over The Last Year

Notably, that recent sale by Carsten Christensen is the biggest insider sale of Kitron shares that we've seen in the last year. That means that an insider was selling shares at around the current price of kr36.65. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. 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 23.12k shares for kr1.0m. But they sold 51.56k shares for kr1.9m. Carsten Christensen sold a total of 51.56k shares over the year at an average price of €37.01. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Does Kitron Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Kitron insiders own 3.3% of the company, worth about kr238m. 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 Kitron Insider Transactions Indicate?

The stark truth for Kitron is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Kitron makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 2 warning signs for Kitron that deserve your attention before buying any shares.

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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.