Insiders Could Have Profited By Holding onto NIBE Industrier Shares Despite 10% Drop

NIBE Industrier AB (publ)'s (STO:NIBE B) stock price has dropped 10% in the previous week, but insiders who sold kr8.2m in stock over the past year have had less luck. Insiders might have been better off holding onto their shares, given that the average selling price of kr104 is still below the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for NIBE Industrier

NIBE Industrier Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Head of Business Area - NIBE Climate Solutions, Klas Dahlberg, sold kr8.2m worth of shares at a price of kr104 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (kr65.76). So it is hard to draw any strong conclusion from it. Klas Dahlberg was the only individual insider to sell over the last year.

Happily, we note that in the last year insiders paid kr1.0m for 9.34k shares. But insiders sold 78.60k shares worth kr8.2m. 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!

I will like NIBE Industrier better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership Of NIBE Industrier

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. It's great to see that NIBE Industrier insiders own 5.6% of the company, worth about kr7.4b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At NIBE Industrier Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the NIBE Industrier insiders selling. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for NIBE Industrier.

Of course NIBE Industrier 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.