Swedish Orphan Biovitrum Insiders Sold kr375m Of Shares Suggesting Hesitancy

The fact that multiple Swedish Orphan Biovitrum AB (publ) (STO:SOBI) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Swedish Orphan Biovitrum

The Last 12 Months Of Insider Transactions At Swedish Orphan Biovitrum

The CEO & President, Guido Oelkers, made the biggest insider sale in the last 12 months. That single transaction was for kr59m worth of shares at a price of kr293 each. So what is clear is that an insider saw fit to sell at around the current price of kr287. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. Notably Guido Oelkers was also the biggest buyer, having purchased kr47m worth of shares.

Happily, we note that in the last year insiders paid kr47m for 303.96k shares. On the other hand they divested 1.28m shares, for kr375m. All up, insiders sold more shares in Swedish Orphan Biovitrum 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. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Swedish Orphan Biovitrum 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.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Swedish Orphan Biovitrum insiders own about kr191m worth of shares. That equates to 0.2% of the company. 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 Do The Swedish Orphan Biovitrum Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Swedish Orphan Biovitrum shares in the last quarter. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Swedish Orphan Biovitrum 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.

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.

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