Insider Spends kr111m Buying More Shares In Skanska

Those following along with Skanska AB (publ) (STO:SKA B) will no doubt be intrigued by the recent purchase of shares by Par Boman, Director of the company, who spent a stonking kr111m on stock at an average price of kr219. That purchase boosted their holding by 10,200%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

See our latest analysis for Skanska

Skanska Insider Transactions Over The Last Year

Notably, that recent purchase by Par Boman is the biggest insider purchase of Skanska shares that we've seen in the last year. That implies that an insider found the current price of kr228 per share to be enticing. 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 do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Skanska share holders is that insiders were buying at near the current price.

Over the last year, we can see that insiders have bought 880.49k shares worth kr191m. But insiders sold 48.80k shares worth kr9.3m. In total, Skanska insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. 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

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.5% of Skanska shares, worth about kr474m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Skanska Insiders?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Skanska insiders are well aligned, and quite possibly think the share price is too low. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Skanska. In terms of investment risks, we've identified 1 warning sign with Skanska and understanding it should be part of your investment process.

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.