Whilst it may not be a huge deal, we thought it was good to see that the Bergman & Beving AB (publ) (STO:BERG B) CEO & President, Pontus Boman, recently bought kr162k worth of stock, for kr49.00 per share. However, we do note that it only increased their holding by 6.2%, and it wasn't a huge purchase by absolute value, either.
Bergman & Beving Insider Transactions Over The Last Year
Notably, that recent purchase by CEO & President Pontus Boman was not the only time they bought Bergman & Beving shares this year. They previously made an even bigger purchase of kr272k worth of shares at a price of kr105 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being kr49.35). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months Bergman & Beving insiders were buying shares, but not selling. Their average price was about kr81.20. I'd consider this a positive as it suggests insiders see value at around the current price, which is kr49.35. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Bergman & Beving insiders own about kr260m worth of shares. That equates to 20% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Bergman & Beving Insider Transactions Indicate?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Bergman & Beving. One for the watchlist, at least! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You'd be interested to know, that we found 3 warning signs for Bergman & Beving and we suggest you have a look.
But note: Bergman & Beving may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
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