Insider Sales At CombinedX Landed A Good Price
While CombinedX AB (publ) (STO:CX) shareholders have enjoyed a good week with stock up 10%, they need remain vigilant. Even though stock prices were relatively low, insiders elected to sell kr2.3m worth of stock in the last year, which could indicate some expected downturn.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
CombinedX Insider Transactions Over The Last Year
The Head of Administration & Information Officer, Bjorn Magnusson, made the biggest insider sale in the last 12 months. That single transaction was for kr2.1m worth of shares at a price of kr34.40 each. So it's clear an insider wanted to take some cash off the table, even below the current price of kr37.40. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 18% of Bjorn Magnusson's holding. The only individual insider seller over the last year was Bjorn Magnusson.
Bjorn Magnusson ditched 66.79k shares over the year. The average price per share was kr33.80. 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!
See our latest analysis for CombinedX
I will like CombinedX 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 CombinedX Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that CombinedX insiders own about kr85m worth of shares (which is 12% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
What Might The Insider Transactions At CombinedX Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of CombinedX insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. 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. Be aware that CombinedX is showing 3 warning signs in our investment analysis, and 1 of those can't be ignored...
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.