Hemnet Group Independent Director Tracey Fellows Sells 50% Of Holding

We wouldn't blame Hemnet Group AB (publ) (STO:HEM) shareholders if they were a little worried about the fact that Tracey Fellows, the Independent Director recently netted about kr8.5m selling shares at an average price of kr284. That sale reduced their total holding by 50% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Hemnet Group

The Last 12 Months Of Insider Transactions At Hemnet Group

In the last twelve months, the biggest single sale by an insider was when the Director, Hakan Hellstrom, sold kr39m worth of shares at a price of kr174 per share. That means that an insider was selling shares at slightly below the current price (kr294). 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. It is worth noting that this sale was 100% of Hakan Hellstrom's holding.

Hemnet Group insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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 Hemnet Group better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Hemnet Group 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Hemnet Group insiders own about kr753m worth of shares. That equates to 2.7% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Hemnet Group Tell Us?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. But since Hemnet Group is profitable and growing, we're not too worried by this. 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 1 warning sign for Hemnet Group you should know about.

But note: Hemnet 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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