Have NOTE Insiders Been Selling Stock?

Some NOTE AB (publ) (STO:NOTE) shareholders may be a little concerned to see that the CEO & President, Johannes Lind-Widestam, recently sold a substantial kr7.9m worth of stock at a price of kr145 per share. That's a big disposal, and it decreased their holding size by 12%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At NOTE

In fact, the recent sale by Johannes Lind-Widestam was the biggest sale of NOTE shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (kr147). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 12%of Johannes Lind-Widestam's holding.

In the last twelve months insiders purchased 25.86k shares for kr4.8m. But they sold 77.30k shares for kr13m. In total, NOTE insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Does NOTE Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that NOTE insiders own 30% of the company, worth about kr1.3b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About NOTE Insiders?

The insider sales have outweighed the insider buying, at NOTE, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since NOTE is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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 1 warning sign for NOTE you should be aware of.

But note: NOTE 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 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.