Jan Bruzelius Is The Independent Director of Scandinavian Enviro Systems AB (publ) (STO:SES) And They Just Picked Up 20% More Shares

Even if it's not a huge purchase, we think it was good to see that Jan Bruzelius, the Independent Director of Scandinavian Enviro Systems AB (publ) (STO:SES) recently shelled out kr449k to buy stock, at kr2.24 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 20%.

See our latest analysis for Scandinavian Enviro Systems

Scandinavian Enviro Systems Insider Transactions Over The Last Year

In fact, the recent purchase by Jan Bruzelius was the biggest purchase of Scandinavian Enviro Systems shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being kr2.18). It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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.

While Scandinavian Enviro Systems insiders bought shares during the last year, they didn't sell. The average buy price was around kr1.22. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 4.7% of Scandinavian Enviro Systems shares, worth about kr59m, according to our data. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Scandinavian Enviro Systems Insiders?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Scandinavian Enviro Systems shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 5 warning signs for Scandinavian Enviro Systems (3 are significant) you should be aware of.

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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