W5 Solutions Chairman of the Board Acquires 4.0% More Stock

Whilst it may not be a huge deal, we thought it was good to see that the W5 Solutions AB (publ) (STO:W5) Chairman of the Board, Jonas Rydin, recently bought kr514k worth of stock, for kr51.43 per share. Although the purchase is not a big one, increasing their shareholding by only 4.0%, it can be interpreted as a good sign.

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W5 Solutions Insider Transactions Over The Last Year

The insider, Anders Lundstrom, made the biggest insider sale in the last 12 months. That single transaction was for kr13m worth of shares at a price of kr79.20 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of kr51.40. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Anders Lundstrom.

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!

View our latest analysis for W5 Solutions

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Insider Ownership Of W5 Solutions

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. It appears that W5 Solutions insiders own 11% of the company, worth about kr101m. 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 W5 Solutions Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, W5 Solutions insiders are reasonably well aligned, and optimistic for the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that W5 Solutions has 2 warning signs and it would be unwise to ignore them.

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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.