NCC Independent Director Simon de Château Sells 60% Of Holding

We'd be surprised if NCC AB (publ) (STO:NCC B) shareholders haven't noticed that the Independent Director, Simon de Château, recently sold kr4.8m worth of stock at kr160 per share. In particular, we note that the sale equated to a 60% reduction in their position size, which doesn't exactly instill confidence.

Check out our latest analysis for NCC

The Last 12 Months Of Insider Transactions At NCC

In fact, the recent sale by Simon de Château was the biggest sale of NCC shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of kr163. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was 60% of Simon de Château's holding.

Happily, we note that in the last year insiders paid kr2.1m for 15.55k shares. On the other hand they divested 72.66k shares, for kr11m. All up, insiders sold more shares in NCC than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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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. Insiders own 1.0% of NCC shares, worth about kr166m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The NCC Insider Transactions Indicate?

An insider sold NCC shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing NCC. Every company has risks, and we've spotted 4 warning signs for NCC (of which 1 is a bit concerning!) you should know about.

But note: NCC 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 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.