B3 Consulting Group AB (publ) (STO:B3) insiders sold kr11m worth of stock, a possible red flag that's yet to materialize

While B3 Consulting Group AB (publ) (STO:B3) shareholders have had a good week with the stock up 15%, they shouldn't let their guards down. Although prices were relatively low, insiders chose to sell kr11m worth of stock in the past 12 months. This could be a sign of impending weakness.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for B3 Consulting Group

The Last 12 Months Of Insider Transactions At B3 Consulting Group

The insider, Tommy Sarenbrant, made the biggest insider sale in the last 12 months. That single transaction was for kr4.1m worth of shares at a price of kr97.00 each. That means that an insider was selling shares at slightly below the current price (kr115). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 12% of Tommy Sarenbrant's holding.

Insiders in B3 Consulting Group didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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: insiders have been buying them).

Insiders at B3 Consulting Group Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at B3 Consulting Group. In total, insider Fredrik Blomgren dumped kr3.1m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does B3 Consulting 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. Insiders own 37% of B3 Consulting Group shares, worth about kr364m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At B3 Consulting Group Tell Us?

An insider hasn't bought B3 Consulting Group stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. On the plus side, B3 Consulting Group makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, B3 Consulting Group has 4 warning signs (and 1 which is a bit concerning) we think you should know about.

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, but not derivative transactions.

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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.