Have Insiders Sold New Wave Group Shares Recently?

Some New Wave Group AB (publ) (STO:NEWA B) shareholders may be a little concerned to see that the Founder, Torsten Jansson, recently sold a substantial kr8.6m worth of stock at a price of kr95.00 per share. However, that sale only accounted for 4.0% of their holding, so arguably it doesn't say much about their conviction.

View our latest analysis for New Wave Group

The Last 12 Months Of Insider Transactions At New Wave Group

In fact, the recent sale by Torsten Jansson was the biggest sale of New Wave Group shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of kr96.00, 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. It is worth noting that this sale was only 4.0% of Torsten Jansson's holding.

In total, New Wave Group insiders sold more than they bought over the last year. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does New Wave Group Boast High 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. New Wave Group insiders own 32% of the company, currently worth about kr4.1b based on the recent share price. 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 New Wave Group Tell Us?

The insider sales have outweighed the insider buying, at New Wave Group, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for New Wave Group you should be aware of.

But note: New Wave 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.

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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.