Several Insiders Invested In Eltel Flagging Positive News

Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Eltel AB (publ) (STO:ELTEL), it sends a favourable message to the company's shareholders.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Eltel

Eltel Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when President & CEO Hakan Dahlstrom bought kr525k worth of shares at a price of kr7.00 per share. So it's clear an insider wanted to buy, at around the current price, which is kr7.36. 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. The good news for Eltel share holders is that insiders were buying at near the current price.

While Eltel insiders bought shares during the last year, they didn't sell. 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!

Eltel is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Eltel Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Eltel. We can see that President & CEO Hakan Dahlstrom paid kr790k for shares in the company. No-one sold. This makes one think the business has some good points.

Insider Ownership Of Eltel

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Our data indicates that Eltel insiders own about kr93m worth of shares (which is 8.6% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Eltel Insiders?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Eltel we think they are probably pretty confident of a bright future. Of course, the future is what matters most. So if you are interested in Eltel, you should check out this free report on analyst forecasts for the company.

Of course Eltel 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.