Insiders Sold kr19m Of Hexatronic Group Stock Possibly Sending Warning Sign

Last week, Hexatronic Group AB (publ)'s (STO:HTRO) stock jumped 10%, but insiders who sold kr19m worth of stock in over the past year are likely to be in a better position. 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 kr63.79, which is higher than the current price, may have been the best decision.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Hexatronic Group Insider Transactions Over The Last Year

The insider, Henrik Larsson-Lyon, made the biggest insider sale in the last 12 months. That single transaction was for kr7.9m worth of shares at a price of kr65.73 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of kr26.59. So it may not tell us anything about how insiders feel about the current share price.

Over the last year, we can see that insiders have bought 59.94k shares worth kr3.2m. On the other hand they divested 299.63k shares, for kr19m. In total, Hexatronic Group insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Hexatronic Group

I will like Hexatronic Group better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Hexatronic Group

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Hexatronic Group insiders own about kr418m worth of shares. That equates to 7.6% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Hexatronic Group Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Hexatronic Group shares in the last quarter. While we feel good about high insider ownership of Hexatronic Group, we can't say the same about the selling of shares. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 2 warning signs for Hexatronic Group you should know about.

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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.