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How Many Knowit AB (publ) (STO:KNOW) Shares Did Insiders Buy, In The Last Year?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Knowit AB (publ) (STO:KNOW).

What Is Insider Selling?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'

View our latest analysis for Knowit

The Last 12 Months Of Insider Transactions At Knowit

In the last twelve months, the biggest single purchase by an insider was when President & CEO Per Wallentin bought kr937k worth of shares at a price of kr189 per share. That means that an insider was happy to buy shares at above the current price of kr182. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. We note that Per Wallentin was both the biggest buyer and the biggest seller.

Over the last year, we can see that insiders have bought 11700 shares worth kr2.2m. But insiders sold 10000 shares worth kr1.9m. Overall, Knowit insiders were net buyers last year. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

OM:KNOW Recent Insider Trading, August 23rd 2019
OM:KNOW Recent Insider Trading, August 23rd 2019

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

Have Knowit Insiders Traded Recently?

In the last three months, Per Wallentin bought kr1.9m. That's only a tiny bit more than the sales, worth kr1.9m. Overall, we don't think these recent trades are particularly informative, one way or the other.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own kr33m worth of Knowit stock, about 0.9% of the company. We prefer to see high levels of insider ownership.

So What Do The Knowit Insider Transactions Indicate?

Insider buying and selling have balanced each other out in the last three months, so we can't deduct anything useful from these recent trades. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Knowit insiders are doubting the company, and they do own shares. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Knowit.

But note: Knowit 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.

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.

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. Thank you for reading.

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