It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Epiroc AB (publ)'s (STO:EPI A) case, it's fantastic news for shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Epiroc Insider Transactions Over The Last Year
The President of Parts & Services Division Jess Kindler made the biggest insider purchase in the last 12 months. That single transaction was for kr1.4m worth of shares at a price of kr228 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being kr209). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While Epiroc insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Epiroc is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Epiroc Insiders Bought Stock Recently
It's good to see that Epiroc insiders have made notable investments in the company's shares. Specifically, Senior Vice President People & Leadership Nadim Penser bought kr495k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Epiroc insiders own about kr65m worth of shares (which is 0.03% of the company). Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Epiroc Tell Us?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Epiroc we think they are probably pretty confident of a bright 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. While conducting our analysis, we found that Epiroc has 1 warning sign and it would be unwise to ignore this.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, 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.
About OM:EPI A
Epiroc AB (publ), together with its subsidiaries, develops and produces equipment for use in surface and underground applications in North America, Europe, South America, Africa, the Middle East, Asia, and Australia.
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