Chief Financial Officer Christian Bergaust Just Bought 28% More Shares In Alelion Energy Systems AB (publ) (STO:ALELIO)

By
Simply Wall St
Published
June 30, 2021
OM:ALELIO
Source: Shutterstock

Whilst it may not be a huge deal, we thought it was good to see that the Alelion Energy Systems AB (publ) (STO:ALELIO) Chief Financial Officer, Christian Bergaust, recently bought kr65k worth of stock, for kr1.71 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 28%.

See our latest analysis for Alelion Energy Systems

The Last 12 Months Of Insider Transactions At Alelion Energy Systems

In fact, the recent purchase by Christian Bergaust was the biggest purchase of Alelion Energy Systems 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 around the current price of kr1.79. That means they have been optimistic about the company in the past, though they may have changed their mind. 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 Alelion Energy Systems insiders decided to buy shares at close to current prices.

Alelion Energy Systems insiders may have bought shares in the last year, but they didn't sell any. They paid about kr1.40 on average. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price of kr1.79. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
OM:ALELIO Insider Trading Volume July 1st 2021

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

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own kr7.9m worth of Alelion Energy Systems stock, about 2.0% of the company. We consider this fairly low insider ownership.

So What Does This Data Suggest About Alelion Energy Systems Insiders?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Alelion Energy Systems insiders are reasonably well aligned, and optimistic for the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 6 warning signs for Alelion Energy Systems you should be aware of, and 3 of them don't sit too well with us.

But note: Alelion Energy Systems may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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