Insider Stock Buying Reaches kr1.31b On AB Volvo

Multiple insiders secured a larger position in AB Volvo (publ) (STO:VOLV B) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At AB Volvo

The Director Helena Stjernholm made the biggest insider purchase in the last 12 months. That single transaction was for kr482m worth of shares at a price of kr255 each. That means that an insider was happy to buy shares at around the current price of kr268. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. 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 5.02m shares for kr1.3b. On the other hand they divested 3.10k shares, for kr815k. In total, AB Volvo insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

See 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).

Insiders At AB Volvo Have Bought Stock Recently

Over the last quarter, AB Volvo insiders have spent a meaningful amount on shares. Director Helena Stjernholm spent kr482m on stock, and there wasn't any selling. That shows some optimism about the company's future.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. AB Volvo insiders own about kr25b worth of shares (which is 4.6% of the company). 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 Does This Data Suggest About AB Volvo Insiders?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about AB Volvo. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing AB Volvo. Be aware that AB Volvo is showing 2 warning signs in our investment analysis, and 1 of those is significant...

But note: AB Volvo 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 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.