Insider Buyers Lose kr513k As Athanase Innovation Sheds kr40m

The recent price decline of 10% in Athanase Innovation AB (publ)'s (STO:ATIN) stock may have disappointed insiders who bought kr2.42m worth of shares at an average price of kr18.15 in the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth kr1.90m which is not ideal.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Athanase Innovation

Athanase Innovation Insider Transactions Over The Last Year

The Director Kenth Eriksson made the biggest insider purchase in the last 12 months. That single transaction was for kr2.2m worth of shares at a price of kr18.15 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being kr14.30). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. We note that Kenth Eriksson was both the biggest buyer and the biggest seller.

In the last twelve months insiders purchased 133.08k shares for kr2.4m. But insiders sold 122.88k shares worth kr2.2m. In total, Athanase Innovation insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Athanase Innovation is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Athanase Innovation insiders own about kr40m worth of shares (which is 11% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Athanase Innovation Insiders?

The fact that there have been no Athanase Innovation insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Athanase Innovation and their transactions don't cause us concern. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 3 warning signs for Athanase Innovation (1 is significant!) and we strongly recommend you look at these before investing.

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.