Stock Analysis

Director Of BPC Instruments Sold 54% Of Their Shares

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NGM:BPCINS

We wouldn't blame BPC Instruments AB (NGM:BPCINS) shareholders if they were a little worried about the fact that Kristofer Cook, the Director recently netted about kr8.1m selling shares at an average price of kr27.50. Probably the most concerning element of the whole transaction is that the disposal amounted to 54% of their entire holding.

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BPC Instruments Insider Transactions Over The Last Year

In fact, the recent sale by Kristofer Cook was the biggest sale of BPC Instruments 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 (kr31.30). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was 54% of Kristofer Cook's stake.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NGM:BPCINS Insider Trading Volume May 27th 2024

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Insider Ownership Of BPC Instruments

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that BPC Instruments insiders own 83% of the company, worth about kr272m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About BPC Instruments Insiders?

An insider 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 BPC Instruments is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for BPC Instruments you should be aware of.

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 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.