Have Nordnet Insiders Been Selling Stock?

Anyone interested in Nordnet AB (publ) (STO:SAVE) should probably be aware that the Chief Financial Officer, Lennart Kran, recently divested kr4.3m worth of shares in the company, at an average price of kr266 each. That sale was 23% of their holding, so it does make us raise an eyebrow.

We've discovered 1 warning sign about Nordnet. View them for free.

The Last 12 Months Of Insider Transactions At Nordnet

The Chief Executive Officer, Lars-Ake Norling, made the biggest insider sale in the last 12 months. That single transaction was for kr58m worth of shares at a price of kr232 each. That means that even when the share price was below the current price of kr272, 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. 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 16% of Lars-Ake Norling's holding. Notably Lars-Ake Norling was also the biggest buyer, having purchased kr13m worth of shares.

Over the last year, we can see that insiders have bought 51.88k shares worth kr13m. On the other hand they divested 293.63k shares, for kr69m. In total, Nordnet insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership Of Nordnet

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Nordnet insiders own 5.3% of the company, currently worth about kr3.6b 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.

So What Does This Data Suggest About Nordnet Insiders?

The recent insider purchases are heartening. But we can't say the same for the transactions over the last 12 months. The high levels of insider ownership, and the recent buying by some insiders suggests they are well aligned and optimistic. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Nordnet. Every company has risks, and we've spotted 1 warning sign for Nordnet you should know about.

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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.