Transfer Group Insider Stock Sellers Must Be Relieved As Market Cap Falls To kr110m

Insiders seem to have made the most of their holdings by selling kr2.3m worth of Transfer Group AB (publ) (NGM:TRNSF) stock at an average sell price of kr0.22 during the past year. The company's market valuation decreased by kr16m after the stock price dropped 13% over the past week, but insiders were spared from painful losses.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Transfer Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the CEO & Director, Mats Holmberg, sold kr1.2m worth of shares at a price of kr0.22 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of kr0.34. 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 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 sold a total of 10.84m shares over the year at an average price of kr0.22. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Transfer Group

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Does Transfer Group Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Transfer Group insiders own about kr41m worth of shares. That equates to 37% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Transfer Group Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. We don't take much encouragement from the transactions by Transfer Group insiders. But it's good to see that insiders own shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 3 warning signs for Transfer Group (1 makes us a bit uncomfortable!) that we believe deserve your full attention.

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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.