AB Volvo CEO, President Acquires 13% More Stock

AB Volvo (publ) (STO:VOLV B) shareholders (or potential shareholders) will be happy to see that the CEO, President, Martin Lundstedt, recently bought a whopping kr11m worth of stock, at a price of kr267. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 13%.

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AB Volvo Insider Transactions Over The Last Year

The Director Helena Stjernholm made the biggest insider purchase in the last 12 months. That single transaction was for kr396m worth of shares at a price of kr265 each. That means that an insider was happy to buy shares at above the current price of kr263. 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 always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Happily, we note that in the last year insiders paid kr427m for 1.62m shares. But they sold 4.50k shares for kr1.2m. In the last twelve months there was more buying than selling by AB Volvo insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for AB Volvo

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of AB Volvo

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that AB Volvo insiders own 4.4% of the company, worth about kr23b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The AB Volvo Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest AB Volvo insiders are well aligned, and quite possibly think the share price is too low. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for AB Volvo (of which 1 can't be ignored!) you should know about.

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.