Systemair (SYSR: SS)

12-month performance: +26%
Insider activity: Bearish
Selling pattern: Large sale from 10% owner
Recent news: Disappointing Q4 update

Systemair is a Swedish company that develops and manufactures ventilation products and solutions. The company has operations in 50 countries in Europe, North America, South America, the Middle East, Asia, Australia, and Africa and generated sales of SEK 8.9 billion last year. It is listed on the OMX Nordic Exchange Stockholm and currently has a market capitalisation of SEK 8.4 billion.

Systemair issued a disappointing quarterly report on 9 June. For the quarter ending 30 April, net sales decreased 5.3% to SEK 2,031 million, while operating profit fell 51% to SEK 56 million. Earnings per share for the quarter totalled SEK -0.02, compared to SEK 1.53 for the same period last year. The Board of Directors proposed that no dividend be paid, citing the current uncertainty surrounding the coronavirus pandemic.

Source 2iQ Research

Systemair shares have had a strong run since late March and looking at insider transaction activity, we think caution is warranted towards the shares right now. We say this because in June, multiple insiders have offloaded SYSR stock including 10% owner EBM-PAPST AB, which sold 5.5 million shares on 18 June, and CFO Anders Ulff. We see this pattern of insider selling as a bearish signal.