Some Wallenstam AB (publ) (STO:WALL B) shareholders may be a little concerned to see that the Vice CEO and Regional Director of Stockholm & Uppsala, Mathias Aronsson, recently sold a substantial kr6.9m worth of stock at a price of kr145 per share. That sale reduced their total holding by 18% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At Wallenstam
Notably, that recent sale by Mathias Aronsson is the biggest insider sale of Wallenstam shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of kr142. While we don't usually like to see insider selling, it's more concerning if the sales take place 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.
In the last twelve months insiders purchased 30.94k shares for kr4.5m. On the other hand they divested 47.65k shares, for kr6.9m. 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!
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).
Does Wallenstam Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Wallenstam insiders own 26% of the company, worth about kr12b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Wallenstam Tell Us?
The insider sales have outweighed the insider buying, at Wallenstam, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since Wallenstam is profitable and growing, we're not too worried by this. 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. For instance, we've identified 4 warning signs for Wallenstam (2 don't sit too well with us) you should be aware of.
Of course Wallenstam 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, but not derivative transactions.
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.