We note that the Slitevind AB (STO:SLITE) Board Member, Fredrik Lindahl, recently sold kr511k worth of stock for kr85.08 per share. It wasn’t a huge sale, but it did reduce their holding by 14%. This does not instill confidence.
Check out our latest analysis for Slitevind
Slitevind Insider Transactions Over The Last Year
In fact, the recent sale by Fredrik Lindahl was the biggest sale of Slitevind shares made by an insider individual in the last twelve months, according to our records. So it’s clear an insider wanted to take some cash off the table, even below the current price of kr90.00. 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. This single sale was just 14% of Fredrik Lindahl’s stake.
The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Does Slitevind 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Slitevind insiders own about kr272m worth of shares (which is 51% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Slitevind Insiders?
An insider sold Slitevind shares recently, but they didn’t buy any. And there weren’t any purchases to give us comfort, over the last year. But it is good to see that Slitevind is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn’t make us feel confident about the company. I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free.
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.
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.
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