Generic Sweden AB (STO:GENI) insiders who sold kr9.4m worth of stock earlier this year are probably glad they did so as market cap slides to kr541m

Over the past year, insiders sold kr9.4m worth of Generic Sweden AB (STO:GENI) stock at an average price of kr80.88 per share allowing them to get the most out of their money. The company's market valuation decreased by kr123m after the stock price dropped 19% over the past week, but insiders were spared from painful losses.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Generic Sweden

Generic Sweden Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Owner & Member of the board, Fredrik Svedberg, sold kr3.5m worth of shares at a price of kr85.00 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is kr44.00. So it may not shed much light on insider confidence at current levels. Fredrik Svedberg was the only individual insider to sell over the last year.

Fredrik Svedberg ditched 115.92k shares over the year. The average price per share was kr80.88. 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!

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).

Insiders at Generic Sweden Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at Generic Sweden. In total, Owner & Member of the board Fredrik Svedberg sold kr3.5m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does Generic Sweden 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Generic Sweden insiders own about kr325m worth of shares (which is 60% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Generic Sweden Tell Us?

An insider sold Generic Sweden shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Generic Sweden is growing earnings. 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 example - Generic Sweden has 4 warning signs we think you should be aware of.

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. 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.