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Johan Lindqvist of Bufab AB (publ) (STO:BUFAB) Just Spent kr100k On Shares

Simply Wall St

Whilst it may not be a huge deal, we thought it was good to see that Johan Lindqvist, who is a company insider, recently bought kr100k worth of stock, for kr100 per share. However, we do note that it only increased their holding by 0.9%, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for Bufab

The Last 12 Months Of Insider Transactions At Bufab

In the last twelve months, the biggest single purchase by an insider was when Chairman Sven-Olof Kulldorff bought kr7.0m worth of shares at a price of kr126 per share. That means that an insider was happy to buy shares at above the current price of kr91.60. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Notably Sven-Olof Kulldorff was also the biggest seller.

Over the last year, we can see that insiders have bought 57.74k shares worth kr7.2m. On the other hand they divested 56738 shares, for kr7.1m. In the last twelve months there was more buying than selling by Bufab insiders. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

OM:BUFAB Recent Insider Trading, March 14th 2020

Bufab is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Bufab insiders own 3.2% of the company, worth about kr110m. 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 Bufab Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Bufab insiders are well aligned, and quite possibly think the share price is too low. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 3 warning signs with Bufab and understanding these should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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 editorial-team@simplywallst.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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.