Kitron Chief Technology Officer Stian Haugen Sells 35% Of Holding

We'd be surprised if Kitron ASA (OB:KIT) shareholders haven't noticed that the Chief Technology Officer, Stian Haugen, recently sold kr2.9m worth of stock at kr41.80 per share. That sale was 35% of their holding, so it does make us raise an eyebrow.

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The Last 12 Months Of Insider Transactions At Kitron

Notably, that recent sale by Stian Haugen is the biggest insider sale of Kitron shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of kr40.08. While insider selling is a negative, to us, it is more negative if the shares are sold 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 68.80k shares for kr2.2m. On the other hand they divested 144.00k shares, for kr5.3m. In total, Kitron insiders sold more than they bought over the last year. 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!

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Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Insiders own 3.7% of Kitron shares, worth about kr291m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Kitron Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at Kitron, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Kitron. In terms of investment risks, we've identified 3 warning signs with Kitron and understanding these should be part of your investment process.

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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 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.