Intrum Insiders kr2.6m Short Of Breakeven On Stock Purchase \

Insiders who bought kr11m worth of Intrum AB (publ) (STO:INTRUM) stock in the last year recovered part of their losses as the stock rose by 10% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled kr2.6m since the time of purchase.

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

See our latest analysis for Intrum

Intrum Insider Transactions Over The Last Year

Notably, that recent purchase by Andres Rubio is the biggest insider purchase of Intrum shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of kr81.62. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While Intrum insiders bought shares during the last year, they didn't sell. Their average price was about kr109. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Intrum Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Intrum. In total, insiders bought kr4.2m worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

Insider Ownership Of Intrum

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own kr42m worth of Intrum stock, about 0.4% of the company. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Intrum Tell Us?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Intrum insiders are well aligned, and that they may think the share price is too low. 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. Our analysis shows 3 warning signs for Intrum (1 is significant!) and we strongly recommend you look at them before investing.

Of course Intrum 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, but not derivative transactions.

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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.