Insider Stock Buying Reaches kr9.09m On Lifco

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Lifco AB (publ)'s (STO:LIFCO B) instance, it's good news for shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Lifco

Lifco Insider Transactions Over The Last Year

The CEO, President & Director Per Waldemarson made the biggest insider purchase in the last 12 months. That single transaction was for kr4.8m worth of shares at a price of kr191 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being kr190). 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 Lifco insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Lifco is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders At Lifco Have Bought Stock Recently

It's good to see that Lifco insiders have made notable investments in the company's shares. Specifically, Head of Business Area Systems Solutions Martin Linder bought kr1.1m worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

Does Lifco Boast High Insider Ownership?

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. Lifco insiders own 51% of the company, currently worth about kr44b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Lifco Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Lifco. Nice! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - Lifco has 1 warning sign we think 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 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.