Insider Stock Buying Reaches kr12.3m On Bravida Holding

Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Bravida Holding AB (publ) (STO:BRAV), that sends out a positive message to the company's shareholders.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Bravida Holding

Bravida Holding Insider Transactions Over The Last Year

The CEO & Group President Mattias Johansson made the biggest insider purchase in the last 12 months. That single transaction was for kr1.9m worth of shares at a price of kr115 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being kr71.70). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Over the last year, we can see that insiders have bought 108.29k shares worth kr12m. On the other hand they divested 26.24k shares, for kr2.4m. In total, Bravida Holding insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Bravida Holding 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.

Insiders At Bravida Holding Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at Bravida Holding. Specifically, Group Chief Purchasing Officer Lars Korduner ditched kr1.1m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Bravida Holding insiders own 1.5% of the company, worth about kr220m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Bravida Holding Insider Transactions Indicate?

An insider sold Bravida Holding shares recently, but they didn't buy any. But we take heart from prior transactions. And insider ownership remains quite considerable. So we're happy to look past recent trading. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Bravida Holding. Case in point: We've spotted 2 warning signs for Bravida Holding you should be aware of, and 1 of them is significant.

Of course Bravida Holding may not be the best stock to buy. So you may wish to see this free collection of high quality 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.