Don't Ignore The Insider Selling In Clas Ohlson

Some Clas Ohlson AB (publ) (STO:CLAS B) shareholders may be a little concerned to see that the Director, Mathias Haid, recently sold a substantial kr23m worth of stock at a price of kr162 per share. However, that sale only accounted for 5.9% of their holding, so arguably it doesn't say much about their conviction.

View our latest analysis for Clas Ohlson

The Last 12 Months Of Insider Transactions At Clas Ohlson

In fact, the recent sale by Mathias Haid was the biggest sale of Clas Ohlson shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (kr174). 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 only 5.9% of Mathias Haid's holding.

Over the last year, we can see that insiders have bought 7.53k shares worth kr632k. But they sold 141.19k shares for kr23m. 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 Clas Ohlson better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

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. Clas Ohlson insiders own about kr4.6b worth of shares (which is 43% of the company). 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 Do The Clas Ohlson Insider Transactions Indicate?

An insider hasn't bought Clas Ohlson stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Clas Ohlson is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Clas Ohlson.

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.

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

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.