Bufab AB (publ) (STO:BUFAB) shareholders (or potential shareholders) will be happy to see that the President & CEO, Jörgen Rosengren, recently bought a whopping kr5.8m worth of stock, at a price of kr68.16. Not only is that a big swing, but it increased their holding size by 35%, which is definitely great to see.
The Last 12 Months Of Insider Transactions At Bufab
Chairman Sven-Olof Kulldorff made the biggest insider purchase in the last 12 months. That single transaction was for kr7.0m worth of shares at a price of kr126 each. That means that even when the share price was higher than kr69.60 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. 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. We note that Sven-Olof Kulldorff was both the biggest buyer and the biggest seller.
In the last twelve months insiders purchased 145.74k shares for kr13m. But insiders sold 141738 shares worth kr12m. In the last twelve months there was more buying than selling by Bufab insiders. The average buy price was around kr91.09. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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).
Does Bufab Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Bufab insiders own about kr84m worth of shares (which is 3.2% of the company). But they may have an indirect interest through a corporate structure that we haven't picked up on. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Does This Data Suggest About Bufab Insiders?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Bufab shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Bufab has 2 warning signs we think you should be aware of.
But note: Bufab 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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