Chief Executive Officer Johannes Larcher Sold A Bunch Of Shares In Storytel

We note that the Storytel AB (publ) (STO:STORY B) Chief Executive Officer, Johannes Larcher, recently sold kr550k worth of stock for kr55.00 per share. It wasn't a huge sale, but it did reduce their holding by 33%. This does not instill confidence.

Check out our latest analysis for Storytel

The Last 12 Months Of Insider Transactions At Storytel

The Vice Chairman & Founder, Jonas Tellander, made the biggest insider sale in the last 12 months. That single transaction was for kr12m worth of shares at a price of kr57.54 each. So we know that an insider sold shares at around the present share price of kr55.05. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Over the last year, we can see that insiders have bought 251.81k shares worth kr14m. On the other hand they divested 535.00k shares, for kr27m. All up, insiders sold more shares in Storytel 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Storytel better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Storytel 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 20% of Storytel shares, worth about kr836m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Storytel Insiders?

An insider hasn't bought Storytel stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. 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. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Storytel.

Of course Storytel may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.

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