Insider Sales At BeammWave Landed A Good Price
While it’s been a great week for BeammWave AB (publ) (STO:BEAMMW B) shareholders after stock gained 11%, they should consider it with a grain of salt. Even though stock prices were relatively low, insiders elected to sell kr831k worth of stock in the last year, which could indicate some expected downturn.
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.
The Last 12 Months Of Insider Transactions At BeammWave
The Board Member & Co-Founder, Markus Tormanen, made the biggest insider sale in the last 12 months. That single transaction was for kr831k worth of shares at a price of kr15.10 each. So it's clear an insider wanted to take some cash off the table, even below the current price of kr18.90. 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. 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. We note that the biggest single sale was 73% of Markus Tormanen's holding. Markus Tormanen was the only individual insider to sell over the last year.
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!
Check out our latest analysis for BeammWave
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that BeammWave insiders own about kr87m worth of shares (which is 8.6% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
What Might The Insider Transactions At BeammWave Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. Still, the insider transactions at BeammWave in the last 12 months are not very heartening. But it's good to see that insiders own shares in the company. 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. To help with this, we've discovered 4 warning signs (2 don't sit too well with us!) that you ought to be aware of before buying any shares in BeammWave.
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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