Lotta Iverstrand Is The Chief Financial Officer of Tempest Security AB (publ) (STO:TSEC) And They Just Picked Up 49% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Tempest Security AB (publ) (STO:TSEC) Chief Financial Officer, Lotta Iverstrand, recently bought kr300k worth of stock, for kr21.00 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 49%.

View our latest analysis for Tempest Security

The Last 12 Months Of Insider Transactions At Tempest Security

Over the last year, we can see that the biggest insider purchase was by Chairman of the Board Terry Spry for kr3.6m worth of shares, at about kr36.00 per share. That means that even when the share price was higher than kr21.30 (the recent price), an insider wanted to purchase shares. 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. 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. Notably Terry Spry was also the biggest seller.

In the last twelve months insiders purchased 134.82k shares for kr4.5m. On the other hand they divested 4.89k shares, for kr138k. Overall, Tempest Security 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Tempest Security is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Tempest Security insiders own about kr114m worth of shares (which is 51% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Tempest Security Tell Us?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Tempest Security insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Tempest Security.

But note: Tempest Security may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.