NKT Insiders Sell €4.0m Of Stock, Possibly Signalling Caution

A number of NKT A/S (CPH:NKT) insiders sold their shares in the last year, which may have raised concerns among investors. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At NKT

In the last twelve months, the biggest single sale by an insider was when the Executive VP & CFO, Line Fandrup, sold kr.2.8m worth of shares at a price of kr.536 per share. That means that even when the share price was below the current price of kr.796, an insider wanted to cash in some shares. 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. 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 just 37% of Line Fandrup's stake.

All up, insiders sold more shares in NKT than they bought, over the last year. 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!

View our latest analysis for NKT

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Insider Ownership Of NKT

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that NKT insiders own 0.1% of the company, worth about kr.62m. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The NKT Insider Transactions Indicate?

It doesn't really mean much that no insider has traded NKT shares in the last quarter. We don't take much encouragement from the transactions by NKT insiders. 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 NKT. At Simply Wall St, we found 1 warning sign for NKT that deserve your attention before buying any shares.

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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.