Svenska Handelsbanken AB (publ) (STO:SHB A) shareholders (or potential shareholders) will be happy to see that the Independent Vice Chairman of the Board, Fredrik Lundberg, recently bought a whopping kr86m worth of stock, at a price of kr85.87. There’s no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 4.8%.
The Last 12 Months Of Insider Transactions At Svenska Handelsbanken
In fact, the recent purchase by Fredrik Lundberg was the biggest purchase of Svenska Handelsbanken shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of kr82.78. 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. We always take careful note of the price insiders pay when purchasing shares. 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.
In the last twelve months insiders purchased 1.51m shares for kr129m. On the other hand they divested 465.42k shares, for kr45m. In the last twelve months there was more buying than selling by Svenska Handelsbanken insiders. You can see a visual depiction of insider transactions (by companies and 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 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).
Insider Ownership of Svenska Handelsbanken
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Svenska Handelsbanken insiders own 1.1% of the company, currently worth about kr1.8b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Svenska Handelsbanken Insiders?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Svenska Handelsbanken insiders are well aligned, and quite possibly think the share price is too low. Looks promising! Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Svenska Handelsbanken.
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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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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