With RaySearch Laboratories AB (publ)'s (STO:RAY B)) price down 15% this week, insiders might find some solace having sold kr8.0m worth of shares earlier this year.

By
Simply Wall St
Published
April 12, 2022
OM:RAY B
Source: Shutterstock

Over the past year, insiders sold kr8.0m worth of RaySearch Laboratories AB (publ) (STO:RAY B) stock at an average price of kr63.21 per share allowing them to get the most out of their money. The company's market valuation decreased by kr283m after the stock price dropped 15% over the past week, but insiders were spared from painful losses.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for RaySearch Laboratories

RaySearch Laboratories Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Founder, Johan Lof, sold kr5.6m worth of shares at a price of kr57.39 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of kr46.35. So it is hard to draw any strong conclusion from it. Johan Lof was the only individual insider to sell shares in the last twelve months.

Johan Lof sold a total of 126.16k shares over the year at an average price of kr63.21. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
OM:RAY B Insider Trading Volume April 12th 2022

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

Does RaySearch Laboratories Boast High 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 27% of RaySearch Laboratories shares, worth about kr427m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At RaySearch Laboratories Tell Us?

The fact that there have been no RaySearch Laboratories insider transactions recently certainly doesn't bother us. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of RaySearch Laboratories insider transactions don't fill us with confidence. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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, but not derivative transactions.

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