Hexagon AB (publ) (STO:HEXA B) insiders who sold €216m worth of stock earlier this year are probably glad they did so as market cap slides to kr310b

By
Simply Wall St
Published
May 11, 2022
OM:HEXA B
Source: Shutterstock

By selling €216m worth of Hexagon AB (publ) (STO:HEXA B) stock at an average sell price of €143 over the last year, insiders seemed to have made the most of their holdings. The company’s market cap plunged by kr25b after price dropped by 7.4% last week but insiders were able to limit their loss to an extent.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Hexagon

The Last 12 Months Of Insider Transactions At Hexagon

In the last twelve months, the biggest single sale by an insider was when the CEO, President & Director, Ola Rollen, sold kr216m worth of shares at a price of kr143 per share. 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 kr115. So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Ola Rollen.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
OM:HEXA B Insider Trading Volume May 11th 2022

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Hexagon

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 0.07% of Hexagon shares, worth about kr232m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Hexagon Insiders?

It doesn't really mean much that no insider has traded Hexagon shares in the last quarter. While we feel good about high insider ownership of Hexagon, we can't say the same about the selling of shares. 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. Case in point: We've spotted 2 warning signs for Hexagon you should be aware of.

But note: Hexagon 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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