ITAB Shop Concept Insiders Placed Bullish Bets Worth kr5.58m

It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in ITAB Shop Concept AB (publ)'s (STO:ITAB) case, it's fantastic news for shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

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ITAB Shop Concept Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Chairman of the Board Anders Moberg bought kr4.3m worth of shares at a price of kr21.50 per share. That means that even when the share price was higher than kr20.85 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. 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.

Happily, we note that in the last year insiders paid kr5.6m for 254.99k shares. But they sold 128.00k shares for kr3.2m. Overall, ITAB Shop Concept insiders were net buyers during the last year. 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!

Check out our latest analysis for ITAB Shop Concept

ITAB Shop Concept is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Does ITAB Shop Concept Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 12% of ITAB Shop Concept shares, worth about kr634m. 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 Do The ITAB Shop Concept Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, ITAB Shop Concept insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ITAB Shop Concept. At Simply Wall St, we've found that ITAB Shop Concept has 2 warning signs (1 doesn't sit too well with us!) that deserve your attention before going any further with your analysis.

Of course ITAB Shop Concept 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.