Stock Analysis

Read This Before Buying Slitevind AB (STO:SLITE) Shares

OM:SLITE
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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 before you buy or sell Slitevind AB (STO:SLITE), you may well want to know whether insiders have been buying or selling.

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What Is Insider Selling?

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 logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

See our latest analysis for Slitevind

The Last 12 Months Of Insider Transactions At Slitevind

Over the last year, we can see that the biggest insider sale was by the Independent Director, Fredrik Lindahl, for kr511k worth of shares, at about kr86.00 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of kr59.00. So it may not shed much light on insider confidence at current levels.

In the last year Slitevind insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
OM:SLITE Insider Trading Volume December 14th 2020

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 Slitevind

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Slitevind insiders own about kr184m worth of shares (which is 53% of the company). 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 Slitevind Tell Us?

It doesn't really mean much that no insider has traded Slitevind shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Slitevind insiders selling. 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. To that end, you should learn about the 5 warning signs we've spotted with Slitevind (including 1 which shouldn't be ignored).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, 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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