Chief Science Officer Of RaySearch Laboratories Sold 38% Of Their Shares
We'd be surprised if RaySearch Laboratories AB (publ) (STO:RAY B) shareholders haven't noticed that the Chief Science Officer, Kjell Eriksson, recently sold kr1.1m worth of stock at kr193 per share. That sale was 38% of their holding, so it does make us raise an eyebrow.
The Last 12 Months Of Insider Transactions At RaySearch Laboratories
Over the last year, we can see that the biggest insider purchase was by insider Gunther Marder for kr2.8m worth of shares, at about kr227 per share. That means that even when the share price was higher than kr183 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Happily, we note that in the last year insiders paid kr8.5m for 38.85k shares. But they sold 5.50k shares for kr1.1m. Overall, RaySearch Laboratories insiders were net buyers during 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!
Check out our latest analysis for RaySearch Laboratories
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership Of RaySearch Laboratories
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. It's great to see that RaySearch Laboratories insiders own 18% of the company, worth about kr1.1b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At RaySearch Laboratories Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about RaySearch Laboratories. That's what I like to see! While it's good to be aware of 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. You'd be interested to know, that we found 1 warning sign for RaySearch Laboratories and we suggest you have a look.
But note: RaySearch Laboratories 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.