Insiders Re-Evaluate Their kr16.2m Stock Purchase As Garo Aktiebolag Falls To kr1.0b

Insiders who bought kr16.2m worth of Garo Aktiebolag (publ)'s (STO:GARO) stock at an average buy price of kr28.75 over the last year may be disappointed by the recent 10% decrease in the stock. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth kr11.5m, which is not what they expected.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Garo Aktiebolag

Garo Aktiebolag Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Chairman of the Board Rickard Blomqvist for kr10m worth of shares, at about kr28.92 per share. That means that even when the share price was higher than kr20.45 (the recent price), an insider wanted to purchase shares. 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. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Rickard Blomqvist was the only individual insider to buy during the last year.

Rickard Blomqvist purchased 563.25k shares over the year. The average price per share was kr28.75. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of Garo Aktiebolag

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Garo Aktiebolag insiders own 41% of the company, worth about kr423m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Garo Aktiebolag Tell Us?

It doesn't really mean much that no insider has traded Garo Aktiebolag shares in the last quarter. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Garo Aktiebolag insiders feel good about the company's future. Of course, the future is what matters most. So if you are interested in Garo Aktiebolag, you should check out this free report on analyst forecasts for the company.

Of course Garo Aktiebolag 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.