It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Hanza Holding AB (publ) (STO:HANZA).
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
The Last 12 Months Of Insider Transactions At Hanza Holding
Vice Chairman Gerald Engström made the biggest insider purchase in the last 12 months. That single transaction was for kr33m worth of shares at a price of kr13.50 each. That means that an insider was happy to buy shares at around the current price of kr16.05. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Hanza Holding insiders decided to buy shares at close to current prices. Notably Gerald Engström was also the biggest seller, having sold kr34m worth of shares.
Over the last year, we can see that insiders have bought 3.5m shares worth kr48m. But they sold 2.5m for kr34m. In the last twelve months there was more buying than selling by Hanza Holding insiders. 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!
Hanza Holding is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Hanza Holding Insiders Bought Stock Recently
Over the last quarter, Hanza Holding insiders have spent a meaningful amount on shares. In total, insiders bought kr1.9m worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.
Does Hanza Holding Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 29% of Hanza Holding shares, worth about kr142m. 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 Does This Data Suggest About Hanza Holding Insiders?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Hanza Holding. Nice! Of course, the future is what matters most. So if you are interested in Hanza Holding, you should check out this free report on analyst forecasts for the company.
But note: Hanza Holding 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.
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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. Thank you for reading.