Mips Insider Lowered Holding By 43% During Last Year

From what we can see, insiders were net sellers in Mips AB (publ)'s (STO:MIPS ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

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.

Check out our latest analysis for Mips

Mips Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Independent Director, Thomas Brautigam, for kr2.4m worth of shares, at about kr540 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is kr471. So it may not tell us anything about how insiders feel about the current share price. Thomas Brautigam was the only individual insider to sell shares in the last twelve months.

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 small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insiders At Mips Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at Mips. In total, Independent Director Thomas Brautigam dumped kr2.4m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

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. Our information indicates that Mips insiders own about -kr24m worth of shares. We might be missing something but that seems like very low insider ownership.

So What Do The Mips Insider Transactions Indicate?

An insider hasn't bought Mips stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since Mips is profitable and growing, we're not too worried by this. When you consider that most companies have higher levels of insider ownership, we're a little wary. We'd certainly practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Mips. Case in point: We've spotted 1 warning sign for Mips you should be aware of.

Of course Mips 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.