Independent Director Ulf Barkman Sold A Bunch Of Shares In OEM International

We wouldn't blame OEM International AB (publ) (STO:OEM B) shareholders if they were a little worried about the fact that Ulf Barkman, the Independent Director recently netted about kr15m selling shares at an average price of kr117. Probably the most concerning element of the whole transaction is that the disposal amounted to 50% of their entire holding.

See our latest analysis for OEM International

OEM International Insider Transactions Over The Last Year

Notably, that recent sale by Ulf Barkman is the biggest insider sale of OEM International shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of kr129. 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. We note that the biggest single sale was 50% of Ulf Barkman's holding.

Over the last year, we can see that insiders have bought 2.50k shares worth kr191k. On the other hand they divested 127.00k shares, for kr15m. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like OEM International 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 OEM International Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. OEM International insiders own 17% of the company, currently worth about kr3.1b based on the recent share price. 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 Do The OEM International Insider Transactions Indicate?

An insider sold OEM International shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 1 warning sign for OEM International you should know about.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com