Had insiders known Capacent Holding AB (publ) (STO:CAPAC) would hit kr164m they might have invested more last year

By
Simply Wall St
Published
August 19, 2021
OM:HEAD
Source: Shutterstock

Insiders who bought Capacent Holding AB (publ) (STO:CAPAC) stock in the last 12 months were richly rewarded last week. The company's market value increased by kr30m as a result of the stock's 23% gain over the same period. In other words, the original kr1.9m purchase is now worth kr3.8m.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Capacent Holding

Capacent Holding Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by President & CEO Edvard Björkenheim for kr900k worth of shares, at about kr30.00 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of kr60.40. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

While Capacent Holding insiders bought shares during the last year, they didn't sell. 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!

insider-trading-volume
OM:CAPAC Insider Trading Volume August 20th 2021

Capacent Holding is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of Capacent Holding

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Capacent Holding insiders own 45% of the company, currently worth about kr74m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Capacent Holding Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Capacent Holding insiders feel good about the company's future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Capacent Holding.

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, but not derivative transactions.

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