Have Dynavox Group Insiders Been Selling Stock?

Anyone interested in Dynavox Group AB (publ) (STO:DYVOX) should probably be aware that the Chief Executive Officer, Fredrik Ruben, recently divested kr2.8m worth of shares in the company, at an average price of kr63.16 each. That sale was 13% of their holding, so it does make us raise an eyebrow.

View our latest analysis for Dynavox Group

The Last 12 Months Of Insider Transactions At Dynavox Group

In the last twelve months, the biggest single sale by an insider was when the Director, Henrik Eskilsson, sold kr24m worth of shares at a price of kr52.86 per share. That means that an insider was selling shares at slightly below the current price (kr61.60). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 10% of Henrik Eskilsson's holding.

In the last twelve months insiders purchased 65.62k shares for kr3.2m. But they sold 505.00k shares for kr27m. In total, Dynavox Group insiders sold more than they bought over the last year. The average sell price was around kr53.78. It's not particularly great to see insiders were selling shares at below recent prices. Of course, the sales could be motivated for a multitude of reasons, so we shouldn't jump to conclusions. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Dynavox Group Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Dynavox Group insiders own 4.6% of the company, worth about kr298m. 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 Dynavox Group Insider Transactions Indicate?

An insider hasn't bought Dynavox Group stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that Dynavox Group is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While it's good to be aware of 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. For example - Dynavox Group has 2 warning signs we think you should be aware of.

Of course Dynavox Group may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.