Don't Ignore The Insider Selling In Genovis AB (publ.)

We wouldn't blame Genovis AB (publ.) (STO:GENO) shareholders if they were a little worried about the fact that Mikael Lonn, the Director recently netted about kr6.5m selling shares at an average price of kr25.50. However, that sale only accounted for 2.7% of their holding, so arguably it doesn't say much about their conviction.

We've discovered 2 warning signs about Genovis AB (publ.). View them for free.

Genovis AB (publ.) Insider Transactions Over The Last Year

In fact, the recent sale by Mikael Lonn was the biggest sale of Genovis AB (publ.) shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of kr26.35. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 2.7% of Mikael Lonn's holding.

In the last twelve months insiders purchased 34.93k shares for kr858k. But they sold 255.65k shares for kr6.5m. 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!

See our latest analysis for Genovis AB (publ.)

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Insider Ownership Of Genovis AB (publ.)

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Genovis AB (publ.) insiders own about kr260m worth of shares. That equates to 15% 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 Genovis AB (publ.) Tell Us?

An insider sold stock recently, but they haven't been buying. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Genovis AB (publ.). For example - Genovis AB (publ.) has 2 warning signs we think you should be aware of.

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 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.