SSH Communications Security Oyj Gains 11%, Insider Trades Reap Benefit

SSH Communications Security Oyj (HEL:SSH1V) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 11%, resulting in a €5.7m rise in the company's market capitalisation, translating to a gain of 44% on their initial investment. As a result, the stock they originally bought for €387.2k is now worth €558.0k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for SSH Communications Security Oyj

SSH Communications Security Oyj Insider Transactions Over The Last Year

Notably, that recent purchase by Chief Executive Officer Teemu Tunkelo was not the only time they bought SSH Communications Security Oyj shares this year. Earlier in the year, they paid €0.93 per share in a €357k purchase. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of €1.38. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Teemu Tunkelo purchased 404.37k shares over the year. The average price per share was €0.96. You can see a visual depiction of insider transactions (by companies and 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 SSH Communications Security Oyj Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 27% of SSH Communications Security Oyj shares, worth about €15m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About SSH Communications Security Oyj Insiders?

We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in SSH Communications Security Oyj and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing SSH Communications Security Oyj. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of SSH Communications Security Oyj.

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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.