Whilst it may not be a huge deal, we thought it was good to see that the Diadrom Holding AB (publ) (STO:DIAH) VP, Sales Manager & Head of Business Development, Viktor Eliasson, recently bought kr53k worth of stock, for kr11.94 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 11%.
The Last 12 Months Of Insider Transactions At Diadrom Holding
VP, Sales Manager & Head of Business Development Viktor Eliasson previously made an even bigger purchase of kr125k worth of shares at a price of kr12.84 per share. That means that even when the share price was higher than kr11.00 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Viktor Eliasson.
Viktor Eliasson bought a total of 19.27k shares over the year at an average price of kr12.36. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Diadrom Holding insiders own about kr20m worth of shares. That equates to 25% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Diadrom Holding Tell Us?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Diadrom Holding we think they are probably pretty confident of a bright future. To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.
Of course Diadrom Holding may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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