Some Hexatronic Group AB (publ) (STO:HTRO) shareholders may be a little concerned to see that the President of Hexatronic Cables & Interconnect Systems AB, Håkan Bäckström, recently sold a substantial kr17m worth of stock at a price of kr340 per share. That sale reduced their total holding by 33% which is hardly insignificant, but far from the worst we've seen.
Hexatronic Group Insider Transactions Over The Last Year
Notably, that recent sale by Håkan Bäckström is the biggest insider sale of Hexatronic Group shares that we've seen in the last year. That means that an insider was selling shares at around the current price of kr329. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Happily, we note that in the last year insiders paid kr2.3m for 6.14k shares. On the other hand they divested 53.00k shares, for kr18m. In total, Hexatronic Group insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Hexatronic Group
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Hexatronic Group insiders own 12% of the company, worth about kr1.6b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Hexatronic Group Insiders?
Unfortunately, there has been more insider selling of Hexatronic Group stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, Hexatronic Group makes money, and is growing profits. 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. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 5 warning signs for Hexatronic Group (2 make us uncomfortable!) that we believe deserve your full attention.
Of course Hexatronic Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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. 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.