Stock Analysis

Insider Buying: The Alimak Group AB (publ) (STO:ALIG) President Just Bought 52% More Shares

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OM:ALIG
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Investors who take an interest in Alimak Group AB (publ) (STO:ALIG) should definitely note that the President, Ole Jodahl, recently paid kr65.90 per share to buy kr1.2m worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 52%, potentially signalling some real optimism.

Check out our latest analysis for Alimak Group

The Last 12 Months Of Insider Transactions At Alimak Group

Notably, that recent purchase by President Ole Jodahl was not the only time they bought Alimak Group shares this year. They previously made an even bigger purchase of kr1.4m worth of shares at a price of kr94.60 per share. That means that an insider was happy to buy shares at above the current price of kr72.80. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months Alimak Group insiders were buying shares, but not selling. They paid about kr77.20 on average. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
OM:ALIG Insider Trading Volume March 31st 2023

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 3.4% of Alimak Group shares, worth about kr261m. 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 Alimak Group Tell Us?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Alimak Group. Looks promising! While we like knowing 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. Be aware that Alimak Group is showing 4 warning signs in our investment analysis, and 2 of those are a bit concerning...

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. 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.