Independent Director Per Fyrenius Just Bought 47% More Shares In CTT Systems AB (STO:CTT)

Whilst it may not be a huge deal, we thought it was good to see that the CTT Systems AB (STO:CTT) Independent Director, Per Fyrenius, recently bought kr50k worth of stock, for kr144 per share. That purchase might not be huge but it did increase their holding by 47%.

See our latest analysis for CTT Systems

The Last 12 Months Of Insider Transactions At CTT Systems

Over the last year, we can see that the biggest insider purchase was by Chairman Tomas Torlöf for kr4.9m worth of shares, at about kr111 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of kr147. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Happily, we note that in the last year insiders paid kr7.3m for 58.59k shares. But they sold 4.00k shares for kr1.0m. In the last twelve months there was more buying than selling by CTT Systems insiders. They paid about kr125 on average. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. 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!

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 of CTT Systems

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that CTT Systems insiders own 17% of the company, worth about kr316m. 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 Do The CTT Systems Insider Transactions Indicate?

The recent insider purchase is heartening. 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 CTT Systems. That's what I like to see! 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 CTT Systems is showing 3 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...

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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