Don't Ignore The Fact That This Insider Just Sold Some Shares In Avensia AB (publ) (STO:AVEN)

We note that a Avensia AB (publ) (STO:AVEN) insider, Kristian Hagset, recently sold kr302k worth of stock for kr16.79 per share. It might not be a huge sale, but it did reduce their holding size 20%, hardly encouraging.

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The Last 12 Months Of Insider Transactions At Avensia

In fact, the recent sale by insider Kristian Hagset was not their only sale of Avensia shares this year. Earlier in the year, they fetched kr15.50 per share in a -kr557k sale. That means that an insider was selling shares at slightly below the current price (kr16.80). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 50% of Kristian Hagset's stake.

Over the last year we saw more insider selling of Avensia shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Avensia better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that Avensia insiders own 41% of the company, worth about kr249m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Avensia Insiders?

Unfortunately, there has been more insider selling of Avensia stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Avensia. You'd be interested to know, that we found 5 warning signs for Avensia and we suggest you have a look.

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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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