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Is The of Telefonaktiebolaget LM Ericsson (publ) (STO:ERIC B) And They Just Sold 93% Of Their Shares

Simply Wall St

Investors may wish to note that an insider of Telefonaktiebolaget LM Ericsson (publ), Peter Laurin, recently netted kr398k from selling stock, receiving an average price of kr88.52. While that isn't a lot of money, it was a whopping 93% of their holding, so certainly isn't a good sign.

View our latest analysis for Telefonaktiebolaget LM Ericsson

The Last 12 Months Of Insider Transactions At Telefonaktiebolaget LM Ericsson

In fact, the recent sale by Peter Laurin was the biggest sale of Telefonaktiebolaget LM Ericsson shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of kr86.22. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Happily, we note that in the last year insiders paid kr222k for 2345.23 shares. But insiders sold 23751.86 shares worth kr2.0m. Over the last year we saw more insider selling of Telefonaktiebolaget LM Ericsson shares, than buying. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

OM:ERIC B Recent Insider Trading, October 29th 2019

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Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Telefonaktiebolaget LM Ericsson insiders own 0.06% of the company, worth about kr172m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Telefonaktiebolaget LM Ericsson Insiders?

Insiders sold Telefonaktiebolaget LM Ericsson shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.