Have Insiders Been Selling Byggmax Group AB (publ) (STO:BMAX) Shares This Year?

We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Byggmax Group AB (publ) (STO:BMAX).

What Is Insider Selling?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

See our latest analysis for Byggmax Group

The Last 12 Months Of Insider Transactions At Byggmax Group

Over the last year, we can see that the biggest insider sale was by the President & CEO of Skã¥Nska Byggvaror Division, Oscar Tjärnberg, for kr5.4m worth of shares, at about kr57.50 per share. So we know that an insider sold shares at around the present share price of kr52.80. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). Notably Oscar Tjärnberg was also the biggest buyer, having purchased kr1.7m worth of shares.

Over the last year, we can see that insiders have bought 65.20k shares worth kr1.7m. But they sold 99.66k shares for kr5.6m. Over the last year we saw more insider selling of Byggmax Group shares, than buying. The average sell price was around kr56.66. It's not too encouraging to see that insiders have sold at below the current price. Of course, the sales could be motivated for a multitude of reasons, so we shouldn't jump to conclusions. 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!

I will like Byggmax 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.

Insider Ownership of Byggmax Group

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Byggmax Group insiders own 0.5% of the company, worth about kr16m. We consider this fairly low insider ownership.

So What Do The Byggmax Group Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Byggmax Group shares in the last quarter. We don't take much encouragement from the transactions by Byggmax Group insiders. But it's good to see that insiders own shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Byggmax Group. Every company has risks, and we've spotted 2 warning signs for Byggmax Group (of which 1 is a bit concerning!) you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

If you decide to trade Byggmax Group, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

This article by Simply Wall St is general in nature. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.