Don't Ignore The Insider Selling In Linc

Some Linc AB (STO:LINC) shareholders may be a little concerned to see that the Chief Financial Officer, Thomas Bergh, recently sold a substantial kr16m worth of stock at a price of kr78.30 per share. That sale reduced their total holding by 20% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Linc

The Last 12 Months Of Insider Transactions At Linc

In fact, the recent sale by Thomas Bergh was the biggest sale of Linc shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (kr78.40). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 20% of Thomas Bergh's holding.

Linc insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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 Linc Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Linc insiders own 64% of the company, currently worth about kr2.9b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Linc Tell Us?

Insiders sold Linc shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since Linc is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Linc. Our analysis shows 2 warning signs for Linc (1 is concerning!) and we strongly recommend you look at them before investing.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.