Read This Before Buying Skandinaviska Enskilda Banken AB (publ.) (STO:SEB A) Shares

We often see insiders buying up shares in companies that perform well over the long term. 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 Skandinaviska Enskilda Banken AB (publ.) (STO:SEB A), you may well want to know whether insiders have been buying or selling.

What Is Insider Buying?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.

Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

View our latest analysis for Skandinaviska Enskilda Banken AB (publ.)

The Last 12 Months Of Insider Transactions At Skandinaviska Enskilda Banken AB (publ.)

In the last twelve months, the biggest single sale by an insider was when the Chief Information Officer, Nicolas Moch, sold kr1.1m worth of shares at a price of kr91.58 per share. That means that even when the share price was slightly below the current price of kr91.60, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent 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. We note that the biggest single sale was 100% of Nicolas Moch's holding.

In the last twelve months insiders purchased 11.48k shares for kr959k. But they sold 16.01k shares for kr1.4m. All up, insiders sold more shares in Skandinaviska Enskilda Banken AB (publ.) 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Are Skandinaviska Enskilda Banken AB (publ.) Insiders Buying Or Selling?

Over the last three months, we've seen a bit of insider selling at Skandinaviska Enskilda Banken AB (publ.). Deputy Director Annika Dahlberg sold just kr54k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the selling simply isn't sufficiently substantial to be of much use as a signal.

Does Skandinaviska Enskilda Banken AB (publ.) Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Skandinaviska Enskilda Banken AB (publ.) insiders own 0.07% of the company, worth about kr131m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Skandinaviska Enskilda Banken AB (publ.) Tell Us?

An insider hasn't bought Skandinaviska Enskilda Banken AB (publ.) stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. 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. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 2 warning signs with Skandinaviska Enskilda Banken AB (publ.) and understanding these should be part of your investment process.

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.

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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. 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.
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