Insider Spends kr307m Buying More Shares In AB Volvo

Those following along with AB Volvo (publ) (STO:VOLV B) will no doubt be intrigued by the recent purchase of shares by Helena Stjernholm, Director of the company, who spent a stonking kr307m on stock at an average price of kr256. That purchase boosted their holding by 119%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

Check out our latest analysis for AB Volvo

AB Volvo Insider Transactions Over The Last Year

Notably, that recent purchase by Helena Stjernholm is the biggest insider purchase of AB Volvo shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is kr261. Of course they may have changed their mind. But this suggests they are optimistic. 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 AB Volvo share holders is that insiders were buying at near the current price.

In the last twelve months insiders purchased 2.42m shares for kr558m. On the other hand they divested 27.00k shares, for kr6.2m. Overall, AB Volvo insiders were net buyers during the last year. The average buy price was around kr230. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

AB Volvo 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.

Does AB Volvo Boast High Insider Ownership?

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. AB Volvo insiders own about kr1.2b worth of shares (which is 0.2% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At AB Volvo Tell Us?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives 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. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing AB Volvo. Case in point: We've spotted 2 warning signs for AB Volvo you should be aware of, and 1 of these is potentially serious.

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 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.