Trade Alert: Independent Chairman of the Board Of CombinedX Niklas Hellberg Has Sold Stock

Some CombinedX AB (publ) (STO:CX) shareholders may be a little concerned to see that the Independent Chairman of the Board, Niklas Hellberg, recently sold a substantial kr10m worth of stock at a price of kr41.50 per share. That's a big disposal, and it decreased their holding size by 31%, which is notable but not too bad.

Check out our latest analysis for CombinedX

The Last 12 Months Of Insider Transactions At CombinedX

Notably, that recent sale by Niklas Hellberg is the biggest insider sale of CombinedX shares that we've seen in the last year. That means that even when the share price was below the current price of kr46.30, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 31%of Niklas Hellberg's holding.

In the last twelve months insiders purchased 17.15k shares for kr538k. But they sold 250.00k shares for kr10m. 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!

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Does CombinedX 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. We usually like to see fairly high levels of insider ownership. CombinedX insiders own about kr220m worth of shares. That equates to 28% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The CombinedX Insider Transactions Indicate?

An insider hasn't bought CombinedX stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that CombinedX is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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 example - CombinedX has 3 warning signs we think you should be aware of.

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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.