Despite the fact that HMS Networks AB (publ) (STO:HMS) stock rose 7.7% last week, insiders who sold kr29m worth of stock in the previous 12 months are likely to be better off. Holding on to stock would have meant their investment would be worth less now than it was at the time of sale. Thus selling at an average price of kr520, which is higher than the current price, may have been the best decision.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
HMS Networks Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Chief Technology Officer, Jörgen Palmhager, for kr21m worth of shares, at about kr537 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. The silver lining is that this sell-down took place above the latest price (kr430). So it may not tell us anything about how insiders feel about the current share price.
In the last twelve months insiders purchased 1.00k shares for kr441k. On the other hand they divested 55.80k shares, for kr29m. In total, HMS Networks insiders sold more than they bought over the last year. 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!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders at HMS Networks Have Bought Stock Recently
There was some insider buying at HMS Networks over the last quarter. Insiders bought kr135k worth of shares in that time. It's great to see that insiders are only buying, not selling. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Does HMS Networks Boast High Insider Ownership?
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. HMS Networks insiders own 14% of the company, currently worth about kr2.7b 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 HMS Networks Tell Us?
The recent insider purchases are heartening. On the other hand the transaction history, over the last year, isn't so positive. The high levels of insider ownership, and the recent buying by some insiders suggests they are well aligned and optimistic. Of course, the future is what matters most. So if you are interested in HMS Networks, you should check out this free report on analyst forecasts for the company.
But note: HMS Networks 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. 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.