Shareholders Can't Ignore kr7.9m Of Sales By Ogunsen Insiders

While it’s been a great week for Ogunsen AB (publ) (STO:OGUN B) shareholders after stock gained 12%, they should consider it with a grain of salt. The fact that insiders chose to dispose of kr7.9m worth of stock in the past 12 months even though prices were relatively low could be indicative of some anticipated weakness.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Ogunsen

Ogunsen Insider Transactions Over The Last Year

In fact, the recent sale by Founder & Chairman Per Ogunro was not their only sale of Ogunsen shares this year. Earlier in the year, they fetched kr43.55 per share in a -kr2.6m sale. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of kr39.50. So it may not shed much light on insider confidence at current levels.

Ogunsen insiders didn't buy any shares over the last year. 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!

I will like Ogunsen better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Ogunsen Insiders Are Selling The Stock

The last quarter saw substantial insider selling of Ogunsen shares. In total, Founder & Chairman Per Ogunro sold kr759k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership Of Ogunsen

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Ogunsen insiders own 28% of the company, worth about kr118m. 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 Ogunsen Insider Transactions Indicate?

An insider hasn't bought Ogunsen stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. 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. Every company has risks, and we've spotted 2 warning signs for Ogunsen (of which 1 is potentially serious!) you should know about.

Of course Ogunsen 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.