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Don't Ignore The Fact That This Insider Just Sold Some Shares In Scandic Hotels Group AB (publ) (STO:SHOT)

Simply Wall St

We note that the Scandic Hotels Group AB (publ) (STO:SHOT) Head of Sweden, Peter Jangbratt, recently sold kr233k worth of stock for kr93.35 per share. It wasn't a huge sale, but it did reduce their holding by 12%. This does not instill confidence.

View our latest analysis for Scandic Hotels Group

The Last 12 Months Of Insider Transactions At Scandic Hotels Group

Over the last year, we can see that the biggest insider purchase was by Independent Chairman of the Board Per Braathen for kr10.0m worth of shares, at about kr78.58 per share. That means that an insider was happy to buy shares at around the current price of kr92.65. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Scandic Hotels Group share holders is that insiders were buying at near the current price.

Over the last year, we can see that insiders have bought 273841 shares worth kr22m. But insiders sold 25507 shares worth kr2.1m. In the last twelve months there was more buying than selling by Scandic Hotels Group insiders. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

OM:SHOT Recent Insider Trading, October 28th 2019

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does Scandic Hotels 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Scandic Hotels Group insiders own 1.7% of the company, worth about kr165m. 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 Do The Scandic Hotels Group Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at Scandic Hotels Group, in the last three months. But we take heart from prior transactions. And insider ownership remains quite considerable. So we're not too bothered by recent selling. Of course, the future is what matters most. So if you are interested in Scandic Hotels Group, you should check out this free report on analyst forecasts for the company.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.