Selling kr18m Of Stock Was Lucrative Decision For Addtech AB (publ.) Insiders

Addtech AB (publ.)'s (STO:ADDT B) stock rose 13% last week, but insiders who sold kr18m worth of stock over the last year are probably in a more advantageous position. Selling at an average price of kr204, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Addtech AB (publ.)

Addtech AB (publ.) Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the MD, President, Niklas Stenberg, sold kr6.0m worth of shares at a price of kr223 per share. That means that even when the share price was below the current price of kr244, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 11% of Niklas Stenberg's holding.

Over the last year, we can see that insiders have bought 26.66k shares worth kr5.2m. On the other hand they divested 86.10k shares, for kr18m. Over the last year we saw more insider selling of Addtech AB (publ.) shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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 Addtech AB (publ.) Insiders Buying Or Selling?

Independent Director Malin Nordesjo bought just kr34k worth of shares in that time. That's not much at all. Looking at the net result, we don't think these recent trades shed much light on how insiders, as a group, are feeling about the company's prospects.

Does Addtech AB (publ.) 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. We usually like to see fairly high levels of insider ownership. Addtech AB (publ.) insiders own 5.3% of the company, currently worth about kr3.5b 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.

What Might The Insider Transactions At Addtech AB (publ.) Tell Us?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. While we gain confidence from high insider ownership of Addtech AB (publ.), we can't say the same about their transactions in the last year, in the absence of further purchases. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Addtech AB (publ.). Every company has risks, and we've spotted 1 warning sign for Addtech AB (publ.) 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.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.