Insiders who acquired kr479k worth of Seamless Distribution Systems AB (publ)’s (STO:SDS) stock at an average price of kr34.24 in the past 12 months may be dismayed by the recent 22% price decline. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth kr263k, which is not what they expected.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
However if you’d rather see where the opportunities and risks are within SDS’ industry, you can check out our analysis on the SE IT industry.
The Last 12 Months Of Insider Transactions At Seamless Distribution Systems
While there weren’t any large insider transactions in the last twelve months, it’s still worth looking at the trading.
While Seamless Distribution Systems insiders bought shares during the last year, they didn’t sell. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Seamless Distribution Systems
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 22% of Seamless Distribution Systems shares, worth about kr44m. 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 Seamless Distribution Systems Tell Us?
The fact that there have been no Seamless Distribution Systems insider transactions recently certainly doesn’t bother us. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Seamless Distribution Systems and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. Our analysis shows 4 warning signs for Seamless Distribution Systems (2 are potentially serious!) and we strongly recommend you look at them before investing.
Of course Seamless Distribution Systems may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
