Insiders who bought Seamless Distribution Systems AB (publ) (STO:SDS) earlier this year lose another 217,000kr as the stock drops to 18.75kr

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Insiders who acquired for 479,000 kr of Seamless Distribution Systems AB (pub) (STO:SDS) at an average price of 34.24kr over the past 12 months might be appalled by the recent 22% price drop. Insiders invest in the hope that their money will increase in value over time. However, following recent losses, their initial investment is now worth only 263,000 kr, which is not what they expected.

While we would never suggest that investors base their decisions solely on what a company’s directors have done, we would consider it foolish to ignore insider trading altogether.

However, if you prefer to see where opportunities and risks are within the SDS industryyou can consult our analysis on the SE IT industry.

The last 12 months of insider trading in homogeneous distribution systems

Although there have been no material insider trades in the last twelve months, it is still worth reviewing the trades.

While Seamless Distribution Systems insiders have bought shares over the past year, they haven’t sold. You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. If you want to know exactly who sold, how much and when, just click on the chart below!

OM:SDS Insider Trading Volume September 24, 2022

There are always plenty of stocks that insiders are buying. So if it suits your style you can check each stock one by one or you can take a look at this free list of companies. (Hint: insiders bought them).

Insider ownership of homogeneous distribution systems

Another way to test alignment between a company’s executives and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely insiders will be incentivized to build the business for the long term. Insiders own 22% of the shares of Seamless Distribution Systems, worth approximately 44 million kr. We have certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest an alignment between insiders and other shareholders.

What could insider trading tell us in homogeneous distribution systems?

The fact that there have been no Seamless Distribution Systems insider trading recently certainly doesn’t bother us. On a more positive note, last year’s transactions are encouraging. Insiders hold stock in Seamless Distribution Systems and we see no evidence to suggest they are worried about the future. So these insider trades can help us build a thesis on the stock, but it’s also helpful to know the risks this company faces. Our analysis shows 4 warning signs for solderless distribution systems (2 are potentially serious!) and we strongly advise you to consult them before investing.

Sure Homogeneous distribution systems may not be the best stocks to buy. So you might want to see this free set of high quality companies.

For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

Valuation is complex, but we help make it simple.

Find out if Homogeneous distribution systems is potentially overvalued or undervalued by viewing our full analysis, which includes fair value estimates, risks and warnings, dividends, insider trading and financial health.

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