Those following along with Train Alliance Sweden AB (publ) (STO:TRAIN B) will no doubt be intrigued by the recent purchase of shares by Otto Persson, Chairman of the Board of the company, who spent a stonking kr7.6m on stock at an average price of kr95.00. Not only is that a big swing, but it increased their holding size by 14%, which is definitely great to see.
The Last 12 Months Of Insider Transactions At Train Alliance Sweden
In fact, the recent purchase by Otto Persson was the biggest purchase of Train Alliance Sweden shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of kr97.70 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. 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. In this case we're pleased to report that the insider bought shares at close to current prices. Otto Persson was the only individual insider to buy during the last year.
Otto Persson bought a total of 130.00k shares over the year at an average price of kr85.65. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Train Alliance Sweden 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.
Insider Ownership of Train Alliance Sweden
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that Train Alliance Sweden insiders own 17% of the company, worth about kr447m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Train Alliance Sweden Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Train Alliance Sweden insiders are well aligned, and quite possibly think the share price is too low. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 4 warning signs we've spotted with Train Alliance Sweden (including 3 which are significant).
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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, but not derivative transactions.
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.