Senior VP Of Saab Sold 46% Of Their Shares

We wouldn't blame Saab AB (publ) (STO:SAAB B) shareholders if they were a little worried about the fact that Annika Baremo, the Senior VP recently netted about kr15m selling shares at an average price of kr616. That's a big disposal, and it decreased their holding size by 46%, which is notable but not too bad.

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Saab Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Senior VP & Head of Group Human Resources, Lena Eliasson, for kr17m worth of shares, at about kr556 per share. That means that an insider was selling shares at slightly below the current price (kr591). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 40% of Lena Eliasson's holding.

Happily, we note that in the last year insiders paid kr2.8m for 5.24k shares. On the other hand they divested 185.33k shares, for kr107m. Over the last year we saw more insider selling of Saab shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Saab

I will like Saab 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.

Does Saab Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.2% of Saab shares, worth about kr770m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Saab Tell Us?

The insider sales have outweighed the insider buying, at Saab, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since Saab 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. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with Saab and understanding this should be part of your investment process.

But note: Saab 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.