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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares in Boozt AB (publ) (STO:BOOZT).
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, rules govern insider transactions, and certain disclosures are required.
We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
View our latest analysis for Boozt
Boozt Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Co-Founder & Group CFO, Allan Junge-Jensen, sold kr5.1m worth of shares at a price of kr63.44 per share. That means that an insider was selling shares at below the current price (kr64.10). 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. 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 41% of Allan Junge-Jensen's holding. Allan Junge-Jensen was the only individual insider to sell over the last year.
Over the last year, we can see that insiders have bought 46236 shares worth kr2.3m. On the other hand they divested 162320 shares, for kr10m. Allan Junge-Jensen divested 162320 shares over the last 12 months at an average price of kr62.77. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insiders at Boozt Have Sold Stock Recently
The last quarter saw substantial insider selling of Boozt shares. Specifically, Co-Founder & Group CFO Allan Junge-Jensen ditched kr10m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.