Trade Alert: Chief Executive Officer of Norway Of Norva24 Group Tore Hansen Has Sold Stock

Anyone interested in Norva24 Group AB (Publ) (STO:NORVA) should probably be aware that the Chief Executive Officer of Norway, Tore Hansen, recently divested kr3.8m worth of shares in the company, at an average price of kr25.23 each. In particular, we note that the sale equated to a 60% reduction in their position size, which doesn't exactly instill confidence.

View our latest analysis for Norva24 Group

The Last 12 Months Of Insider Transactions At Norva24 Group

Notably, that recent sale by Tore Hansen is the biggest insider sale of Norva24 Group shares that we've seen in the last year. That means that even when the share price was slightly below the current price of kr25.25, 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 60% of Tore Hansen's stake.

Over the last year, we can see that insiders have bought 40.19k shares worth kr1.0m. But they sold 150.00k shares for kr3.8m. 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 are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Norva24 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 12% of Norva24 Group shares, worth about kr566m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Norva24 Group Insider Transactions Indicate?

An insider sold Norva24 Group shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Norva24 Group makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 1 warning sign for Norva24 Group that deserve your attention before buying any shares.

But note: Norva24 Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.

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

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.