Selling Precio Fishbone Shares at a Lower Price Than Current Market Value May Have Been a Costly Mistake for Insiders

Despite the fact that Precio Fishbone AB (publ)'s (STO:PRCO B) value has dropped 10% in the last week insiders who sold kr40m worth of stock in the past 12 months have had less success. Given that the average selling price of kr28.50 is still lower than the current share price, insiders would probably have been better off keeping their shares.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Our free stock report includes 3 warning signs investors should be aware of before investing in Precio Fishbone. Read for free now.

The Last 12 Months Of Insider Transactions At Precio Fishbone

In the last twelve months, the biggest single sale by an insider was when the Chief Executive Officer, Christer Johansson, sold kr40m worth of shares at a price of kr28.50 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 kr21.40. So it is hard to draw any strong conclusion from it. Christer Johansson was the only individual insider to sell over the last year. Notably Christer Johansson was also the biggest buyer, having purchased kr32m worth of shares.

Happily, we note that in the last year insiders paid kr32m for 1.13m shares. On the other hand they divested 1.41m shares, for kr40m. Christer Johansson sold a total of 1.41m shares over the year at an average price of kr28.50. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Precio Fishbone

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Insider Ownership Of Precio Fishbone

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Precio Fishbone insiders own about kr17m worth of shares (which is 8.9% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Precio Fishbone Tell Us?

The fact that there have been no Precio Fishbone insider transactions recently certainly doesn't bother us. Our analysis of Precio Fishbone insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 3 warning signs (1 is concerning!) that you ought to be aware of before buying any shares in Precio Fishbone.

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 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.