Balco Group Insiders Forfeit On 12% Gains After Selling Stock
Balco Group AB's (STO:BALCO) stock rose 12% last week, but insiders who sold kr581k worth of stock over the last year are probably in a more advantageous position. Selling at an average price of kr19.36, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Balco Group
The insider, Camilla Ekdahl, made the biggest insider sale in the last 12 months. That single transaction was for kr581k worth of shares at a price of kr19.36 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (kr17.00). So it may not shed much light on insider confidence at current levels. Camilla Ekdahl was the only individual insider to sell shares in the last twelve months. Notably Camilla Ekdahl was also the biggest buyer, having purchased kr239k worth of shares.
In the last twelve months insiders purchased 14.96k shares for kr239k. On the other hand they divested 30.00k shares, for kr581k. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for Balco Group
I will like Balco Group 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.
Does Balco Group Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Balco Group insiders own about kr80m worth of shares. That equates to 20% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Balco Group Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. Still, the insider transactions at Balco Group in the last 12 months are not very heartening. 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 Balco Group. For example, Balco Group has 2 warning signs (and 1 which can't be ignored) we think you should know about.
Of course Balco Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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.