Invisio Insiders Sold kr582m Of Shares Suggesting Hesitancy

In the last year, many Invisio AB (publ) (STO:IVSO) insiders sold a substantial stake in the company which may have sparked shareholders' attention. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, if numerous insiders are selling, shareholders should investigate more.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Invisio

Over the last year, we can see that the biggest insider sale was by the President & CEO, Lars Hansen, for kr362m worth of shares, at about kr421 per share. So what is clear is that an insider saw fit to sell at around the current price of kr417. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. Notably Lars Hansen was also the biggest buyer, having purchased kr214m worth of shares.

All up, insiders sold more shares in Invisio 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Invisio

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Invisio Insiders Are Selling The Stock

Over the last three months, we've seen notably more insider selling, than insider buying, at Invisio. In total, insiders sold kr558m worth of shares in that time. On the flip side, President & CEO Lars Hansen spent kr214m on purchasing shares (as mentioned above) . Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the company has been fully valued in recent months.

Does Invisio Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Invisio insiders own about kr74m worth of shares (which is 0.4% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Invisio Insider Transactions Indicate?

The stark truth for Invisio is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Invisio is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Invisio. Case in point: We've spotted 2 warning signs for Invisio you should be aware of, and 1 of these is a bit unpleasant.

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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.