Generic Sweden AB (STO: GENI) insiders who sold shares for SEK 9.4 million earlier this year are probably happy that they did so when the market value fell to SEK 541 million
During the past year, insiders sold for SEK 9.4 million Generic Sweden AB (STO: GENI) share at an average price of SEK 80.88 per share, which means that they can get the most out of their money. The company’s market valuation fell by SEK 123 million after the share price fell by 19% in the past week, but insiders were spared from painful losses.
Although we do not believe that shareholders should simply follow insider transactions, the logic is that you should pay attention to whether insiders buy or sell shares.
See our latest analysis for Generic Sweden
Generic Sweden insider transactions during the past year
During the last twelve months, the largest single sale was by an insider when the owner and board member, Fredrik Svedberg, sold shares for SEK 3.5 million at a price of SEK 85.00 per share. Although we usually do not like to see insider sales, it is more worrying if the sales are made at a lower price. It is a consolation that this sale was made at a price well above the current share price, which is SEK 44.00. So it may not shed much light on insiders’ confidence at current levels. Fredrik Svedberg was the only individual insider to sell in the past year.
Fredrik Svedberg delivered 115.92,000 shares during the year. The average price per share was SEK 80.88. The chart below shows insider transactions (by company and individual) during the past year. If you click on the chart, you can see all the individual transactions, including the share price, the individual and the date!
If you like buying stocks that insiders buy, rather than selling, you might just love this free list of companies. (Hint: insiders have bought them).
Insiders at Generic Sweden have recently sold shares
During the past three months, we have seen significant insider sales at Generic Sweden. In total, Owner & board member Fredrik Svedberg sold shares for SEK 3.5 million during that time, and we did not register any purchases at all. This may indicate that some insiders think that the shares are not cheap.
Does Generic Sweden have high insider ownership?
I like to look at how many shares insiders own in a company, to help inform my views on how consistent they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be motivated to build the company in the long run. Generic Sweden insiders own approximately SEK 325 million in shares (which is 60% of the company). I like to see this level of insider ownership, because it increases the chances that management thinks of the shareholders’ best interests.
What can the insider transactions on Generic Sweden tell us?
An insider recently sold Generic Sweden shares, but they did not buy any. If you look at the last twelve months, our data shows no insider purchases. But it is good to see that Generic Sweden is increasing revenues. Although insiders own a lot of shares in the company (which is good), our analysis of their transactions does not make us confident in the company. So while it’s good to know what insiders are doing when it comes to buying or selling, it’s also good to know what risks a particular company is facing. For example – Generic Sweden has 4 warning signs we think you should be aware of.
If you prefer to check out another company – one with potentially superior finances – do not miss this free list of interesting companies, which have HIGH returns on equity and low indebtedness.
In this article, insiders are the individuals who report their transactions to the relevant regulatory body. We currently report open market transactions and private transactions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide comments based on historical data and analyst forecasts only using an impartial method and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any shares and does not take into account your goals or your financial situation. We strive to provide you with long-term focused analysis driven by basic data. Please note that our analysis may not take into account the latest price sensitive company announcements or qualitative material. Simply Wall St has no position in any of the shares mentioned.