Trade Alert: Chairman of the Board Of Tele2 Thomas Reynaud Has Sold Stock

We wouldn't blame Tele2 AB (publ) (STO:TEL2 B) shareholders if they were a little worried about the fact that Thomas Reynaud, the Chairman of the Board recently netted about kr38m selling shares at an average price of kr167. That diminished their holding by a very significant 90%, which arguably implies a strong desire to reallocate capital.

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The Last 12 Months Of Insider Transactions At Tele2

In fact, the recent sale by Thomas Reynaud was the biggest sale of Tele2 shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of kr158. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Tele2

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does Tele2 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. We usually like to see fairly high levels of insider ownership. It appears that Tele2 insiders own 0.1% of the company, worth about kr156m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Tele2 Insiders?

An insider sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that Tele2 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. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 3 warning signs for Tele2 you should know about.

But note: Tele2 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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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.