Thomas Bergström Just Bought A Bunch Of Shares In Avensia AB (publ) (STO:AVEN)

Even if it's not a huge purchase, we think it was good to see that Thomas Bergström, a Avensia AB (publ) (STO:AVEN) insider, recently shelled out kr126k to buy stock, at kr14.00 per share. That might not be a big purchase but it only increased their holding by 9.3%, and could be interpreted as a good sign.

View our latest analysis for Avensia

Avensia Insider Transactions Over The Last Year

The Executive Vice President of Global Business Development, Jörgen Bertilsson, made the biggest insider sale in the last 12 months. That single transaction was for kr8.3m worth of shares at a price of kr16.60 each. That means that an insider was selling shares at around the current price of kr14.55. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Happily, we note that in the last year insiders paid kr734k for 122k shares. But insiders sold 530k shares worth kr8.8m. In total, Avensia insiders sold more than they bought over the last year. The sellers received a price of around kr16.55, on average. It's not too encouraging to see that insiders have sold at below the current price. But we wouldn't put too much weight on the insider selling. You can see a visual depiction of insider transactions (by 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!

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. Insiders own 35% of Avensia shares, worth about kr182m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Avensia Insider Transactions Indicate?

The stark truth for Avensia is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Avensia is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Avensia.

But note: Avensia 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, but not derivative transactions.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.