Insiders At AB Electrolux Sold kr14m Of Stock Potentially Indicating Weakness

Despite a 12% gain in AB Electrolux (publ)'s (STO:ELUX B) stock price this week, shareholders shouldn't let up. In spite of the relatively cheap prices, insiders made the decision to sell kr14m worth of stock in the last 12 months. This could be a warning indicator of vulnerabilities in the future.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for AB Electrolux

The Last 12 Months Of Insider Transactions At AB Electrolux

In the last twelve months, the biggest single sale by an insider was when the President, Jonas Samuelson, sold kr7.0m worth of shares at a price of kr129 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (kr110). So it is hard to draw any strong conclusion from it. Notably Jonas Samuelson was also the biggest buyer, having purchased kr5.8m worth of shares.

In the last twelve months insiders purchased 42.30k shares for kr5.8m. But they sold 106.14k shares for kr14m. In total, AB Electrolux insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like AB Electrolux better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, 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. We usually like to see fairly high levels of insider ownership. Insiders own 0.2% of AB Electrolux shares, worth about kr56m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The AB Electrolux Insider Transactions Indicate?

It doesn't really mean much that no insider has traded AB Electrolux shares in the last quarter. We don't take much encouragement from the transactions by AB Electrolux insiders. The modest level of insider ownership is, at least, some comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing AB Electrolux. For example - AB Electrolux has 1 warning sign we think you should be aware of.

But note: AB Electrolux 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.