Don't Ignore The Insider Selling In MilDef Group

We wouldn't blame MilDef Group AB (publ) (STO:MILDEF) shareholders if they were a little worried about the fact that Jan Andersson, the Independent Director recently netted about kr39m selling shares at an average price of kr260. That sale reduced their total holding by 23% which is hardly insignificant, but far from the worst we've seen.

Our free stock report includes 3 warning signs investors should be aware of before investing in MilDef Group. Read for free now.

MilDef Group Insider Transactions Over The Last Year

Notably, that recent sale by Jan Andersson is the biggest insider sale of MilDef Group shares that we've seen in the last year. 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 kr234. So it may not shed much light on insider confidence at current levels.

Insiders in MilDef Group didn't buy any shares in the last year. 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!

Check out our latest analysis for MilDef Group

I will like MilDef Group better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does MilDef Group Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. MilDef Group insiders own about kr1.7b worth of shares (which is 15% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About MilDef Group Insiders?

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. 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 MilDef Group. For example - MilDef Group has 3 warning signs we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.