Chairman of the Board of Garo Aktiebolag Picks Up 1.4% More Stock

Even if it's not a huge purchase, we think it was good to see that Rickard Blomqvist, the Chairman of the Board of Garo Aktiebolag (publ) (STO:GARO) recently shelled out kr685k to buy stock, at kr27.38 per share. Although the purchase is not a big one, increasing their shareholding by only 1.4%, it can be interpreted as a good sign.

View our latest analysis for Garo Aktiebolag

The Last 12 Months Of Insider Transactions At Garo Aktiebolag

In fact, the recent purchase by Chairman of the Board Rickard Blomqvist was not their only acquisition of Garo Aktiebolag shares this year. Earlier in the year, they paid kr77.15 per share in a kr22m purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being kr29.00). 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 always take careful note of the price insiders pay when purchasing 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.

In the last twelve months Garo Aktiebolag insiders were buying shares, but not selling. The average buy price was around kr47.44. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Garo Aktiebolag 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.

Does Garo Aktiebolag Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Garo Aktiebolag insiders own about kr577m worth of shares. That equates to 40% of the company. 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 Do The Garo Aktiebolag Insider Transactions Indicate?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Garo Aktiebolag 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. You'd be interested to know, that we found 1 warning sign for Garo Aktiebolag and we suggest you have a look.

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 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.