This Insider Has Just Sold Shares In Swedish Orphan Biovitrum

We wouldn't blame Swedish Orphan Biovitrum AB (publ) (STO:SOBI) shareholders if they were a little worried about the fact that Guido Oelkers, the CEO & President recently netted about kr30m selling shares at an average price of kr276. That's a big disposal, and it decreased their holding size by 20%, which is notable but not too bad.

See our latest analysis for Swedish Orphan Biovitrum

The Last 12 Months Of Insider Transactions At Swedish Orphan Biovitrum

Notably, that recent sale by Guido Oelkers is the biggest insider sale of Swedish Orphan Biovitrum shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (kr282). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 20%of Guido Oelkers's holding.

Over the last year, we can see that insiders have bought 112.00k shares worth kr23m. But insiders sold 290.28k shares worth kr77m. Over the last year we saw more insider selling of Swedish Orphan Biovitrum shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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 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.

Does Swedish Orphan Biovitrum Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Swedish Orphan Biovitrum insiders own 0.2% of the company, worth about kr213m. 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 Swedish Orphan Biovitrum Tell Us?

The insider sales have outweighed the insider buying, at Swedish Orphan Biovitrum, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Swedish Orphan Biovitrum has 4 warning signs we think you should be aware of.

But note: Swedish Orphan Biovitrum 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 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.