Insiders At Invisio Sold kr588m In Stock, Alluding To Potential Weakness

The fact that multiple Invisio AB (publ) (STO:IVSO) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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Invisio Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the President & CEO, Lars Hansen, sold kr362m worth of shares at a price of kr421 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is kr363. So it may not tell us anything about how insiders feel about the current share price. Notably Lars Hansen was also the biggest buyer, having purchased kr215m worth of shares.

Happily, we note that in the last year insiders paid kr215m for 511.45k shares. On the other hand they divested 1.41m shares, for kr588m. In total, Invisio insiders sold more 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!

Check out our latest analysis for Invisio

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Invisio Insiders Are Selling The Stock

There was substantially more insider selling, than buying, of Invisio shares over the last three months. In total, Senior Vice President of Global Sales & Marketing Carsten Aagesen sold kr1.9m worth of shares in that time. On the flip side, insiders spent kr455k on purchasing shares. Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the shares are not cheap.

Does Invisio 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. Our data indicates that Invisio insiders own about kr54m worth of shares (which is 0.3% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Invisio Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Invisio stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But since Invisio is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! Of course, the future is what matters most. So if you are interested in Invisio, you should check out this free report on analyst forecasts for the company.

But note: Invisio may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.