Even if it’s not a big buy, we think it’s good to see Mats Johansson, the CEO of Iconovo AB (publ) (STO: ICO) recently spent SEK 689,000 buying shares at SEK 68.87 per share. It only added 1.1% to their stocks, however, and it wasn’t a big buy in absolute terms either.
Check out our latest analysis for Iconovo
The last 12 months of insider trading at Iconovo
In the past twelve months, the insider’s biggest single sale was when the CTO, co-founder and director of Orest Lastow sold shares valued at 1.1 million kr at a price of 55.00 kr per share. This means that an insider sold shares at a price slightly below the current price (69.80 kr). We generally consider it negative for insiders to have sold, especially if they did so below the current price, as it implies that they considered a lower price to be reasonable. While inside sales can be daunting at times, it is only a weak signal. It is worth noting that this sale was only 2.4% of Orest Lastow’s stake. Orest Lastow was the only insider to sell in the last year.
In the past twelve months, insiders bought 14.21,000 shares for 917,000 kr. But they sold 20,000 shares for 1.1 million kr. The following graph shows insider transactions (by companies and individuals) over the past year. If you click on the chart you will see all of the individual transactions including the stock price, the individual and the date!
OM: ICO Insider Trading Volume May 26, 2021
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Iconovo insider owned
Another way to test alignment between a company’s executives and other shareholders is to see how many stocks they own. I think it is a good sign when insiders own a significant number of shares in the company. Iconovo insiders own shares valued at around 248 million kroner (that’s 46% of the company). Most shareholders would be happy with this type of inside ownership as it suggests that management incentives are well aligned with other shareholders.
What do the Iconovo Insider Transactions show?
The recent insider buying is encouraging. However, we cannot say the same for transactions over the past 12 months. The high levels of insider ownership and recent purchases by some insiders suggest that they are well aligned and optimistic. So, these insider deals can help us build a thesis about the stock, but it’s also worth knowing the risks this company faces. We found it in Simply Wall Street 2 warning signs for Iconovo that deserves your attention before buying stocks.
But note: Iconovo may not be the best stock to buy. So take a look at it free List of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are persons who report their transactions to the competent supervisory authority. We currently consider open market transactions and private sales, but not derivative transactions.
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