Storytel is the market leader for streamed audiobooks in Sweden, offering thousands of audiobooks and e-books in Sweden, Denmark, Norway and Holland. The company is enjoying strong growth and announced on December 3rd 2015 that it has surpassed 200,000 subscribers, up from 110,000 at the end of 2014.
Also on December 3rd, Storytel announced that some of the founders have sold shares corresponding 6% of the outstanding capital. Among the buyers were several institutional investors, with Swedish investment company Creades being the most high profile. All of sellers remain large shareholders of Storytel. Since the announcement, the Storytel share has declined from SEK 25 to currently around SEK 19,50 (i.e. 22%).
What has gone unnoticed by the market, however, is the fact that three insiders have started to buy their first shares in the company during December (source: Aktietorget). Most notable, one of them bought not less than 135,599 shares, which was a sizable investment of more than SEK 3m on the day he bought the shares.
We believe the Storytel share has been beaten up excessively and is somewhat forgotten. Risk/reward at current levels seems attractive. Insider buying is a welcome data point.