Insiders At Samhällsbyggnadsbolaget i Norden Sold kr8.1m In Stock, Alluding To Potential Weakness

Samhällsbyggnadsbolaget i Norden AB (publ) (STO:SBB B) shareholders might have a reason to worry after multiple insiders sold their shares over the last year. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Samhällsbyggnadsbolaget i Norden

The Last 12 Months Of Insider Transactions At Samhällsbyggnadsbolaget i Norden

Over the last year, we can see that the biggest insider purchase was by Independent Director Hans Runesten for kr4.5m worth of shares, at about kr5.20 per share. That means that an insider was happy to buy shares at above the current price of kr4.18. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. Notably Hans Runesten was also the biggest seller.

Over the last year, we can see that insiders have bought 919.39k shares worth kr4.8m. But insiders sold 1.37m shares worth kr8.1m. In total, Samhällsbyggnadsbolaget i Norden insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. 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 Samhällsbyggnadsbolaget i Norden

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. It appears that Samhällsbyggnadsbolaget i Norden insiders own 9.6% of the company, worth about kr697m. 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 Samhällsbyggnadsbolaget i Norden Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. While we feel good about high insider ownership of Samhällsbyggnadsbolaget i Norden, we can't say the same about the selling of shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Samhällsbyggnadsbolaget i Norden has 4 warning signs (3 are significant!) that deserve your attention before going any further with your analysis.

But note: Samhällsbyggnadsbolaget i Norden 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.