Insider Sales At Transfer Group Landed A Good Price

Despite a 11% gain in Transfer Group AB (publ)'s (NGM:TRNSF) stock price this week, shareholders shouldn't let up. Even though stock prices were relatively low, insiders elected to sell kr2.3m worth of stock in the last year, which could indicate some expected downturn.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Transfer Group

The Last 12 Months Of Insider Transactions At Transfer Group

The CEO & Director, Mats Holmberg, made the biggest insider sale in the last 12 months. That single transaction was for kr1.2m worth of shares at a price of kr0.22 each. That means that even when the share price was below the current price of kr0.25, an insider wanted to cash in some shares. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 5.9% of Mats Holmberg's holding. Mats Holmberg was the only individual insider to sell over the last year.

In the last twelve months insiders purchased 9.53m shares for kr2.0m. On the other hand they divested 10.84m shares, for kr2.3m. Mats Holmberg ditched 10.84m shares over the year. The average price per share was kr0.22. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insiders At Transfer Group Have Sold Stock Recently

We've seen more insider selling than insider buying at Transfer Group recently. In that time, CEO & Director Mats Holmberg dumped kr1.3m worth of shares. Meanwhile CEO & Director Mats Holmberg bought kr360 worth. Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the shares are not cheap.

Insider Ownership Of Transfer Group

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Transfer Group insiders own 30% of the company, worth about kr23m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Transfer Group Tell Us?

The insider sales have outweighed the insider buying, at Transfer Group, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For instance, we've identified 5 warning signs for Transfer Group (3 can't be ignored) 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.