Have Insiders Been Buying Seamless Distribution Systems AB (publ) (STO:SDS) Shares?
It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares in Seamless Distribution Systems AB (publ) (STO:SDS).
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.
See our latest analysis for Seamless Distribution Systems
Seamless Distribution Systems Insider Transactions Over The Last Year
There wasn't any very large single transaction over the last year, but we can still observe some trading.
Seamless Distribution Systems insiders may have bought shares in the last year, but they didn't sell any. 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!
Seamless Distribution Systems is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Seamless Distribution Systems
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 25% of Seamless Distribution Systems shares, worth about kr90m. 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 Seamless Distribution Systems Insider Transactions Indicate?
The fact that there have been no Seamless Distribution Systems insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Seamless Distribution Systems insiders are doubting the company, and they do own shares. 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 instance, we've identified 6 warning signs for Seamless Distribution Systems (2 are significant) you should be aware of.
But note: Seamless Distribution Systems 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. 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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About NGM:SDS
Seamless Distribution Systems
Provides software and services for digital sales and distribution to individuals through mobile operators worldwide.
Reasonable growth potential and fair value.