Should You Take Comfort From Insider Transactions At Green Landscaping Holding AB (publ) (STO:GREEN)?

We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we’ll take a look at whether insiders have been buying or selling shares in Green Landscaping Holding AB (publ) (STO:GREEN).

What Is Insider Buying?

It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.

We don’t think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’

Check out our latest analysis for Green Landscaping Holding

The Last 12 Months Of Insider Transactions At Green Landscaping Holding

In the last twelve months, the biggest single purchase by an insider was when Chief Executive Officer Johan Nordström bought kr3.8m worth of shares at a price of kr24.00 per share. We do like to see buying, but this purchase was made at well below the current price of kr32.50. Because the shares were purchased at a lower price, this particular buy doesn’t tell us much about how insiders feel about the current share price.

Over the last year, we can see that insiders have bought 186k shares worth kr4.6m. In the last twelve months Green Landscaping Holding insiders were buying shares, but not selling. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

OM:GREEN Recent Insider Trading, April 11th 2019
OM:GREEN Recent Insider Trading, April 11th 2019

Green Landscaping 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 Green Landscaping Holding

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Green Landscaping Holding insiders own 9.5% of the company, worth about kr111m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Green Landscaping Holding Insiders?

It doesn’t really mean much that no insider has traded Green Landscaping Holding shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like Green Landscaping Holding insiders are reasonably well aligned (owning significant chunk of the company’s shares) and optimistic for the future. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Green Landscaping Holding.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.