Insiders At Fortnox Sold kr8.9m In Stock, Alluding To Potential Weakness

In the last year, many Fortnox AB (publ) (STO:FNOX) insiders sold a substantial stake in the company which may have sparked shareholders' attention. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

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 Fortnox

Fortnox Insider Transactions Over The Last Year

The Deputy CEO & CFO, Roger Hartelius, made the biggest insider sale in the last 12 months. That single transaction was for kr7.0m worth of shares at a price of kr46.46 each. That means that even when the share price was below the current price of kr55.40, 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 43% of Roger Hartelius's holding.

Happily, we note that in the last year insiders paid kr780k for 11.75k shares. But they sold 179.94k shares for kr8.9m. In total, Fortnox 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Insiders At Fortnox Have Bought Stock Recently

There was some insider buying at Fortnox over the last quarter. Insiders purchased kr285k worth of shares in that period. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.

Insider Ownership Of Fortnox

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Fortnox insiders own 21% of the company, currently worth about kr7.1b based on the recent share price. 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 Do The Fortnox Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. However, the longer term transactions are not so encouraging. The recent buying by some insiders , along with high insider ownership, suggest that Fortnox insiders are fairly aligned, and optimistic. Of course, the future is what matters most. So if you are interested in Fortnox, you should check out this free report on analyst forecasts for the company.

But note: Fortnox 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.

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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.