The Chief Financial Officer of Sectra AB (publ) (STO:SECT B), Mats Franzén, Just Bought 1.6% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Sectra AB (publ) (STO:SECT B) Chief Financial Officer, Mats Franzén, recently bought kr123k worth of stock, for kr614 per share. However, it only increased their shares held by 1.6%, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for Sectra

Sectra Insider Transactions Over The Last Year

The Independent Director, Christer Nilsson, made the biggest insider sale in the last 12 months. That single transaction was for kr3.5m worth of shares at a price of kr502 each. That means that even when the share price was below the current price of kr608, 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. This single sale was just 49% of Christer Nilsson's stake.

Over the last year, we can see that insiders have bought 453.00 shares worth kr287k. But they sold 9.25k shares for kr4.7m. All up, insiders sold more shares in Sectra than they bought, 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

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).

Insider Ownership of Sectra

For a common shareholder, it is worth checking how many shares are held by company 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. Sectra insiders own about kr7.3b worth of shares (which is 31% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Sectra Tell Us?

It's certainly positive to see the recent insider purchase. On the other hand the transaction history, over the last year, isn't so positive. The high levels of insider ownership, and the recent buying by an insider suggests they are well aligned and optimistic. 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.

But note: Sectra 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, but not derivative transactions.

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