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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell AF Gruppen ASA (OB:AFG), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
See our latest analysis for AF Gruppen
The Last 12 Months Of Insider Transactions At AF Gruppen
The , Lars Paulsen, made the biggest insider sale in the last 12 months. That single transaction was for øre2.6m worth of shares at a price of øre161 each. That means that an insider was selling shares at slightly below the current price (øre169). 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was 80% of Lars Paulsen's holding.
Over the last year, we can see that insiders have bought 47775 shares worth øre4.9m. On the other hand they divested 23513 shares, for øre3.5m. In the last twelve months there was more buying than selling by AF Gruppen insiders. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
AF Gruppen is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at AF Gruppen Have Sold Stock Recently
The last three months saw significant insider selling at AF Gruppen. Specifically, Lars Paulsen ditched øre2.6m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.