Bergman & Beving Insiders Sell kr7.6m Of Stock, Possibly Signalling Caution

Bergman & Beving AB (publ) (STO:BERG B) shareholders may have reason to be concerned, as several insiders sold their shares over the past year. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Bergman & Beving

Bergman & Beving Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Division Head of Tools & Consumables Division, Oscar Fredell, for kr4.5m worth of shares, at about kr159 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of kr138. So it may not shed much light on insider confidence at current levels. Notably Oscar Fredell was also the biggest buyer, having purchased kr6.8m worth of shares.

Happily, we note that in the last year insiders paid kr6.8m for 68.77k shares. But they sold 51.83k shares for kr7.6m. Over the last year we saw more insider selling of Bergman & Beving 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 are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Bergman & Beving Insiders Are Selling The Stock

There was substantially more insider selling, than buying, of Bergman & Beving shares over the last three months. We note Division Head of Tools & Consumables Division Oscar Fredell cashed in kr4.5m worth of shares. On the flip side, insiders spent kr3.5m on purchasing shares. Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the shares are not cheap.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Bergman & Beving insiders own about kr295m worth of shares. That equates to 8.1% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Bergman & Beving Tell Us?

The insider sales have outweighed the insider buying, at Bergman & Beving, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Bergman & Beving is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 2 warning signs for Bergman & Beving and we suggest you have a look.

But note: Bergman & Beving may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.