The CEO, President & Director of Troax Group AB (publ) (STO:TROAX), Thomas Widstrand, Just Bought A Few More Shares

By
Simply Wall St
Published
May 13, 2022
OM:TROAX
Source: Shutterstock

Potential Troax Group AB (publ) (STO:TROAX) shareholders may wish to note that the CEO, President & Director, Thomas Widstrand, recently bought kr2.2m worth of stock, paying kr218 for each share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

Check out our latest analysis for Troax Group

The Last 12 Months Of Insider Transactions At Troax Group

Notably, that recent purchase by Thomas Widstrand is the biggest insider purchase of Troax Group shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being kr203). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Troax Group insiders may have bought shares in the last year, but they didn't sell any. 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!

insider-trading-volume
OM:TROAX Insider Trading Volume May 13th 2022

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Troax Group insiders own 5.9% of the company, worth about kr721m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Troax Group Insider Transactions Indicate?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Troax Group. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Troax Group. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Troax Group.

But note: Troax Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

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