This Insider Has Just Sold Shares In AQ Group

We wouldn't blame AQ Group AB (publ) (STO:AQ) shareholders if they were a little worried about the fact that Per-Olof Andersson, the Founder & Director recently netted about kr141m selling shares at an average price of kr188. However, that sale only accounted for 4.5% of their holding, so arguably it doesn't say much about their conviction.

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The Last 12 Months Of Insider Transactions At AQ Group

Notably, that recent sale by Per-Olof Andersson is the biggest insider sale of AQ Group shares that we've seen in the last year. That means that an insider was selling shares at below the current price (kr190). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 4.5% of Per-Olof Andersson's holding.

In total, AQ Group insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for AQ Group

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Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. AQ Group insiders own 36% of the company, currently worth about kr6.4b based on the recent share price. 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 AQ Group Insiders?

The insider sales have outweighed the insider buying, at AQ Group, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, AQ Group makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. In terms of investment risks, we've identified 1 warning sign with AQ Group and understanding this should be part of your investment process.

But note: AQ Group 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.