This W5 Solutions Insider Reduced Their Stake By 13%

Looking at W5 Solutions AB (publ)'s (STO:W5 ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.

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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W5 Solutions Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Independent Chairman of the Board, Anders Lundstrom, for kr13m worth of shares, at about kr79.20 per share. While insider selling is a negative, to us, it is more negative if the shares are sold 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 kr71.60. So it is hard to draw any strong conclusion from it. Anders Lundstrom was the only individual insider to sell shares in the last twelve months.

In the last twelve months insiders purchased 12.75k shares for kr746k. But insiders sold 163.86k shares worth kr13m. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for W5 Solutions

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W5 Solutions Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at W5 Solutions. Specifically, Independent Chairman of the Board Anders Lundstrom ditched kr13m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership Of W5 Solutions

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. Insiders own 12% of W5 Solutions shares, worth about kr128m. 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 W5 Solutions Insiders?

An insider hasn't bought W5 Solutions stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that W5 Solutions is showing 2 warning signs in our investment analysis, and 1 of those is potentially serious...

But note: W5 Solutions 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.