We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in ByggPartner i Dalarna Holding AB (publ) (STO:BYGGP).
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 in the company. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
The Last 12 Months Of Insider Transactions At ByggPartner i Dalarna Holding
Director Bo Olsson made the biggest insider purchase in the last 12 months. That single transaction was for kr10.0m worth of shares at a price of kr29.00 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of kr40.50. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Happily, we note that in the last year insiders bought 587k shares for a total of kr18m. ByggPartner i Dalarna Holding insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
ByggPartner i Dalarna Holding is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of ByggPartner i Dalarna Holding
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, ByggPartner i Dalarna Holding insiders have about 3.1% of the stock, worth approximately kr15m. However, it's possible that insiders might have an indirect interest through a more complex structure. I generally like to see higher levels of ownership.
So What Do The ByggPartner i Dalarna Holding Insider Transactions Indicate?
It doesn't really mean much that no insider has traded ByggPartner i Dalarna Holding shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in ByggPartner i Dalarna Holding and we see no evidence to suggest they are worried about the future. I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free .
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.
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If you spot an error that warrants correction, please contact the editor at email@example.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.