Trade Alert: Division Head of Industrial Equipment Division Of Bergman & Beving Oscar Fredell Has Sold Stock

We wouldn't blame Bergman & Beving AB (publ) (STO:BERG B) shareholders if they were a little worried about the fact that Oscar Fredell, the Division Head of Industrial Equipment Division recently netted about kr14m selling shares at an average price of kr321. Probably the most concerning element of the whole transaction is that the disposal amounted to 86% of their entire holding.

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Bergman & Beving Insider Transactions Over The Last Year

In fact, the recent sale by Oscar Fredell was the biggest sale of Bergman & Beving 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 kr309. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Happily, we note that in the last year insiders paid kr3.8m for 12.59k shares. But insiders sold 90.69k shares worth kr28m. All up, insiders sold more shares in Bergman & Beving than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Bergman & Beving

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Insider Ownership Of Bergman & Beving

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. Insiders own 5.1% of Bergman & Beving shares, worth about kr421m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Bergman & Beving Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Bergman & Beving stock, than buying, 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. 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. For instance, we've identified 2 warning signs for Bergman & Beving (1 is significant) you should be aware of.

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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.