Bullish Swedbank Insiders Loaded Up On kr26.5m Of Stock

Quite a few insiders have dramatically grown their holdings in Swedbank AB (publ) (STO:SWED A) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Swedbank

The Last 12 Months Of Insider Transactions At Swedbank

In the last twelve months, the biggest single purchase by an insider was when Director Goran Bengtsson bought kr25m worth of shares at a price of kr213 per share. That implies that an insider found the current price of kr217 per share to be enticing. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Swedbank insiders decided to buy shares at close to current prices.

Over the last year, we can see that insiders have bought 124.63k shares worth kr27m. On the other hand they divested 1.50k shares, for kr328k. In the last twelve months there was more buying than selling by Swedbank insiders. 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. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Have Swedbank Insiders Traded Recently?

In the last quarter there were insider sales totalling kr328k. That's only a tiny bit more than the purchases, worth kr322k. Looking at the net result, we don't think this recent trading sheds much light on how insiders, as a group, are feeling about the company's prospects.

Does Swedbank Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Swedbank insiders own 0.04% of the company, worth about kr99m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Swedbank Insider Transactions Indicate?

We can't make any useful conclusions about recent trading, since insider buying and selling has been balanced. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Swedbank and their transactions don't cause us concern. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 2 warning signs for Swedbank (1 doesn't sit too well with us!) and we strongly recommend you look at them before investing.

Of course Swedbank 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 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.