Market cap

Hexagon AB (publ) (STO:HEXA B)’s recent kr 13 billion market cap drop means a loss of €92,000 for insiders who bought this year

The recent price drop of 3.8% in Hexagon AB (pub) (STO:HEXA B) The stock may have disappointed insiders who bought €2.8 million worth of shares at an average price of €125 over the past 12 months. Insiders invest in the hope that their money will increase in value over time. However, following recent losses, their initial investment is now only worth €2.7m, which is not what they expected.

Although we would never suggest that investors base their decisions solely on what a company’s directors have done, logic dictates that you pay attention to whether insiders are buying or selling shares.

Check out our latest analysis for Hexagon

Hexagon insider trades over the past year

Over the past year, we can see that the biggest insider buy was made by COO Paolo Guglielmini for 1.8 million kr of shares, at around 128 kr per share. This means that an insider was happy to buy shares above the current price of 121 kr. Although their perspective has changed since the purchase, it at least suggests that they have confidence in the future of the company. We always take careful note of the price paid by insiders when buying stocks. It is generally more encouraging if they paid above the current price, as this suggests that they perceived value even at higher levels.

Over the past twelve months, Hexagon insiders have been buying stock, but not selling. You can see insider trading (by companies and individuals) over the past year illustrated in the table below. If you click on the chart, you can see all individual trades including stock price, individual and date!

OM:HEXA B Insider Trading Volume November 21, 2022

Hexagon isn’t the only stock insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider buying, might be just the ticket.

Insider ownership

Many investors like to check how much a company is owned by insiders. I think it’s a good sign if insiders have a significant number of shares in the company. Hexagon insiders hold approximately 245 million kr of shares. This equals 0.08% of the business. This level of insider ownership is good, but just short of being particularly noteworthy. This certainly suggests a reasonable degree of alignment.

What could insider trading at Hexagon tell us?

It doesn’t mean much that no insider has traded Hexagon stock in the last quarter. However, our analysis of transactions over the past year is encouraging. It would be great to see more insider buying, but overall it looks like Hexagon insiders are reasonably well-aligned (holding a significant portion of the company’s stock) and optimistic about the future. In addition to knowing what insider trading is going on, it is useful to identify the risks that Hexagon faces. Every business has risks, and we’ve spotted 1 warning sign for Hexagon you should know.

Sure, you might find a fantastic investment by looking elsewhere. So take a look at this free list of interesting 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.

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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.