Insiders Could Have Profited By Holding onto Wise Group Shares Despite 12% Drop
Despite the fact that Wise Group AB (publ)'s (STO:WISE) value has dropped 12% in the last week insiders who sold kr20m worth of stock in the past 12 months have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of kr20.00 is still lower than the current share price.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Wise Group
The Director, Stefan Rossi, made the biggest insider sale in the last 12 months. That single transaction was for kr20m worth of shares at a price of kr20.00 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 (kr10.55). So it may not shed much light on insider confidence at current levels. Stefan Rossi was the only individual insider to sell shares in the last twelve months.
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!
See our latest analysis for Wise Group
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Insider Ownership Of Wise Group
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Wise Group insiders own 48% of the company, currently worth about kr45m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Wise Group Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Wise Group shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Wise Group insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Wise Group. Every company has risks, and we've spotted 4 warning signs for Wise Group (of which 2 are potentially serious!) you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.