AGES Industri Insider Sellers Vindicated After 11% Drop

By selling kr2.1m worth of AGES Industri AB (publ) (STO:AGES B) stock at an average sell price of kr51.60 over the last year, insiders seemed to have made the most of their holdings. The company’s market cap plunged by kr53m after price dropped by 11% last week but insiders were able to limit their loss to an extent.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for AGES Industri

The Last 12 Months Of Insider Transactions At AGES Industri

In the last twelve months, the biggest single sale by an insider was when the Independent Director, Anna Benjamin, sold kr2.1m worth of shares at a price of kr51.60 per share. That means that an insider was selling shares at slightly below the current price (kr58.50). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 5.4% of Anna Benjamin's holding. The only individual insider seller over the last year was Anna Benjamin.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Are AGES Industri Insiders Buying Or Selling?

Over the last three months, we've seen a bit of insider buying at AGES Industri. Chief Financial Officer Johan Bladh bought kr60k worth of shares in that time. We like it when there are only buyers, and no sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Insider Ownership Of AGES Industri

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It's great to see that AGES Industri insiders own 45% of the company, worth about kr185m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The AGES Industri Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. However, the longer term transactions are not so encouraging. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, AGES Industri insiders are reasonably well aligned, and optimistic for the future. While we like knowing 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. In terms of investment risks, we've identified 2 warning signs with AGES Industri and understanding them should be part of your investment process.

Of course AGES Industri may not be the best stock to buy. So you may wish to see this free collection of high quality 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.