Have Surgical Science Sweden Insiders Been Selling Stock?

Simply Wall St · 09/15/2023 04:03

We wouldn't blame Surgical Science Sweden AB (publ) (STO:SUS) shareholders if they were a little worried about the fact that Jan Bengtsson, the Director recently netted about kr105m selling shares at an average price of kr150. However, that sale only accounted for 8.9% of their holding, so arguably it doesn't say much about their conviction.

Check out our latest analysis for Surgical Science Sweden

The Last 12 Months Of Insider Transactions At Surgical Science Sweden

Notably, that recent sale by Jan Bengtsson is the biggest insider sale of Surgical Science Sweden shares that we've seen in the last year. That means that even when the share price was slightly below the current price of kr153, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 8.9%of Jan Bengtsson's holding.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
OM:SUS Insider Trading Volume September 15th 2023

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Does Surgical Science Sweden Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Surgical Science Sweden insiders own 33% of the company, currently worth about kr2.5b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Surgical Science Sweden Tell Us?

Unfortunately, there has been more insider selling of Surgical Science Sweden stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Surgical Science Sweden makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for Surgical Science Sweden you should be aware of.

But note: Surgical Science Sweden 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.