Hexatronic Group Insiders Sell kr20m Of Stock, Possibly Signalling Caution

The fact that multiple Hexatronic Group AB (publ) (STO:HTRO) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Hexatronic Group

The Last 12 Months Of Insider Transactions At Hexatronic Group

In the last twelve months, the biggest single sale by an insider was when the CEO & Group President, Henrik Larsson-Lyon, sold kr7.9m worth of shares at a price of kr65.73 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is kr34.24. So it may not tell us anything about how insiders feel about the current share price.

In the last twelve months insiders purchased 103.97k shares for kr5.1m. On the other hand they divested 309.11k shares, for kr20m. All up, insiders sold more shares in Hexatronic Group than they bought, over the last year. They sold for an average price of about kr63.20. We are not joyful about insider selling. But the selling was at much higher prices than the current share price (kr34.24), so it probably doesn't tell us a lot about the value on offer today. You can see a visual depiction of insider transactions (by companies and 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!

I will like Hexatronic Group better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insiders At Hexatronic Group Have Sold Stock Recently

We have seen a bit of insider selling at Hexatronic Group, over the last three months. insider Anna Bailey only netted kr234k selling shares, in that period. It's not great to see insider selling, nor the lack of recent buyers. But the volume sold is so low that it really doesn't bother us.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Hexatronic Group insiders own 7.7% of the company, worth about kr539m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Hexatronic Group Insiders?

An insider hasn't bought Hexatronic Group stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Hexatronic Group. You'd be interested to know, that we found 3 warning signs for Hexatronic Group and we suggest you have a look.

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.