Have Vestum Insiders Been Selling Stock?

We wouldn't blame Vestum AB (publ) (STO:VESTUM) shareholders if they were a little worried about the fact that Per-Arne Ahlgren, the Independent Director recently netted about kr6.9m selling shares at an average price of kr11.48. However, that sale only accounted for 2.5% of their holding, so arguably it doesn't say much about their conviction.

See our latest analysis for Vestum

The Last 12 Months Of Insider Transactions At Vestum

In the last twelve months, the biggest single purchase by an insider was when Founder & Chairman Conny Ryk bought kr19m worth of shares at a price of kr9.30 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of kr11.06. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months insiders purchased 4.31m shares for kr39m. On the other hand they divested 979.65k shares, for kr11m. In total, Vestum insiders bought more than they sold 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!

Vestum is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Vestum insiders own 46% of the company, currently worth about kr1.9b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Vestum Insiders?

Unfortunately, there has been more insider selling of Vestum stock, than buying, in the last three months. In contrast, they appear keener if you look at the last twelve months. We are also comforted by the high levels of insider ownership. So we're not too bothered by recent selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Vestum that deserve your attention before buying any shares.

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.