Insider Buying: The AB Fagerhult (STO:FAG) Independent Chairman Just Bought 13% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the AB Fagerhult (STO:FAG) Independent Chairman, Jan Svensson, recently bought kr238k worth of stock, for kr47.55 per share. That purchase might not be huge but it did increase their holding by 13%.

View our latest analysis for AB Fagerhult

AB Fagerhult Insider Transactions Over The Last Year

In fact, the recent purchase by Jan Svensson was the biggest purchase of AB Fagerhult shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being kr46.25). It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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.

Over the last year, we can see that insiders have bought 11.08k shares worth kr459k. But they sold 833.00 shares for kr30k. Overall, AB Fagerhult insiders were net buyers during the last year. The average buy price was around kr41.42. Although they bought at below the recent price of kr46.25 per share, it is good to see that insiders are willing to invest in the company. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

AB Fagerhult 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.

Insider Ownership of AB Fagerhult

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that AB Fagerhult insiders own 2.8% of the company, worth about kr228m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About AB Fagerhult Insiders?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest AB Fagerhult insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 2 warning signs for AB Fagerhult (1 is a bit unpleasant) you should be aware of.

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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