Sandvik Insiders Added kr446.2m Of Stock To Their Holdings

Quite a few insiders have dramatically grown their holdings in Sandvik AB (publ) (STO:SAND) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.

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 Sandvik

The Last 12 Months Of Insider Transactions At Sandvik

Over the last year, we can see that the biggest insider purchase was by Director Helena Stjernholm for kr412m worth of shares, at about kr219 per share. That means that an insider was happy to buy shares at around the current price of kr237. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Sandvik share holders is that insiders were buying at near the current price.

Over the last year, we can see that insiders have bought 2.05m shares worth kr446m. But they sold 89.29k shares for kr20m. In the last twelve months there was more buying than selling by Sandvik insiders. 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!

Sandvik is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Sandvik

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. Insiders own 0.3% of Sandvik shares, worth about kr750m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Sandvik Tell Us?

It doesn't really mean much that no insider has traded Sandvik shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Sandvik insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sandvik. You'd be interested to know, that we found 1 warning sign for Sandvik and we suggest you have a look.

Of course Sandvik 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.