Possible Bearish Signals With Protector Forsikring Insiders Disposing Stock

Protector Forsikring ASA (OB:PROT) shareholders might have a reason to worry after multiple insiders sold their shares over the last year. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Protector Forsikring Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Deputy CEO, Hans Didring, for kr4.9m worth of shares, at about kr506 per share. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of kr512. 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 3.4% of Hans Didring's holding.

Happily, we note that in the last year insiders paid kr676k for 1.47k shares. But insiders sold 10.76k shares worth kr5.4m. All up, insiders sold more shares in Protector Forsikring than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Protector Forsikring

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Protector Forsikring Insiders Are Selling The Stock

We've seen more insider selling than insider buying at Protector Forsikring recently. We note insiders cashed in kr5.4m worth of shares. On the other hand we note Independent Director Håkon Astrup bought kr619k worth of shares. Generally this level of net selling might be considered a bit bearish.

Insider Ownership Of Protector Forsikring

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 2.2% of Protector Forsikring shares, worth about kr925m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Protector Forsikring Insiders?

Unfortunately, there has been more insider selling of Protector Forsikring stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that Protector Forsikring is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. Be aware that Protector Forsikring is showing 2 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...

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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.