Dometic Group Chief Financial Officer Acquires 1,318% More Stock

Dometic Group AB (publ) (STO:DOM) shareholders (or potential shareholders) will be happy to see that the Chief Financial Officer, Stefan Fristedt, recently bought a whopping kr7.9m worth of stock, at a price of kr46.47. That increased their holding by a full 1,318%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.

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Dometic Group Insider Transactions Over The Last Year

Notably, that recent purchase by Stefan Fristedt is the biggest insider purchase of Dometic Group shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is kr51.05. 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 do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Dometic Group insiders decided to buy shares at close to current prices.

While Dometic Group insiders bought shares during the last year, they didn't sell. The average buy price was around kr52.92. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Dometic Group

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Does Dometic Group Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.7% of Dometic Group shares, worth about kr114m. 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 Dometic Group Tell Us?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Dometic Group insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Dometic Group. Every company has risks, and we've spotted 2 warning signs for Dometic Group you should know about.

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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.