This Insider Has Just Sold Shares In BTS Group

Anyone interested in BTS Group AB (publ) (STO:BTS B) should probably be aware that the Founder & Chairman, Henrik Ekelund, recently divested kr2.2m worth of shares in the company, at an average price of kr80.00 each. On the bright side, that sale was only 1.0% of their holding, so we doubt it's very meaningful, on its own.

See our latest analysis for BTS Group

The Last 12 Months Of Insider Transactions At BTS Group

Notably, that recent sale by Founder & Chairman Henrik Ekelund was not the only time they traded BTS Group shares this year. Earlier in the year, they spent kr17m to buy shares at kr250 per share. We do like to see buying, but this purchase was made at well below the current price of kr306. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. BTS Group insiders own about kr1.8b worth of shares (which is 31% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At BTS Group Tell Us?

An insider sold stock recently, but they haven't been buying. In contrast, they appear keener if you look at the last twelve months. On top of that, insiders own a significant portion of the company. So the recent selling doesn't worry us. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that BTS Group has 3 warning signs and it would be unwise to ignore these.

Of course BTS Group 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.

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