Have Generic Sweden AB (STO:GENI) Insiders Been Selling Their Stock?

We'd be surprised if Generic Sweden AB (STO:GENI) shareholders haven't noticed that the Owner & Member of the board, Fredrik Svedberg, recently sold kr1.3m worth of stock at kr66.12 per share. However, the silver lining is that the sale only reduced their total holding by 1.8%, so we're hesitant to read anything much into it, on its own.

See our latest analysis for Generic Sweden

The Last 12 Months Of Insider Transactions At Generic Sweden

Notably, that recent sale by Fredrik Svedberg is the biggest insider sale of Generic Sweden shares that we've seen in the last year. While insider selling is a negative, to us, it is more negative if the shares are sold 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 kr61.00. So it may not tell us anything about how insiders feel about the current share price.

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 Generic Sweden 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 of Generic Sweden

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Generic Sweden insiders own 72% of the company, currently worth about kr538m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Generic Sweden Tell Us?

An insider sold Generic Sweden shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, Generic Sweden makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 3 warning signs for Generic Sweden that deserve your attention before buying any shares.

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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