Director Richard Akhtarzand Sold A Bunch Of Shares In ADDvise Group

We wouldn't blame ADDvise Group AB (publ) (STO:ADDV A) shareholders if they were a little worried about the fact that Richard Akhtarzand, the Director recently netted about kr37m selling shares at an average price of kr15.00. That diminished their holding by a very significant 95%, which arguably implies a strong desire to reallocate capital.

View our latest analysis for ADDvise Group

The Last 12 Months Of Insider Transactions At ADDvise Group

In fact, the recent sale by Richard Akhtarzand was the biggest sale of ADDvise Group shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of kr15.95, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 95% of Richard Akhtarzand's holding.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does ADDvise Group Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. ADDvise Group insiders own about kr482m worth of shares. That equates to 34% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At ADDvise Group Tell Us?

An insider hasn't bought ADDvise Group stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But since ADDvise Group is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While it's good to be aware of 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. When we did our research, we found 3 warning signs for ADDvise Group (1 is significant!) that we believe deserve your full attention.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.