Great news for ICA Gruppen AB (publ) (STO:ICA): Insiders acquired stock in large numbers last year

By
Simply Wall St
Published
September 17, 2021
OM:ICA
Source: Shutterstock

Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of ICA Gruppen AB (publ) (STO:ICA), that sends out a positive message to the company's 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.

See our latest analysis for ICA Gruppen

The Last 12 Months Of Insider Transactions At ICA Gruppen

While no particular insider transaction stood out, we can still look at the overall trading.

ICA Gruppen insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
OM:ICA Insider Trading Volume September 17th 2021

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Are ICA Gruppen Insiders Buying Or Selling?

There was only a small bit of insider buying, worth kr41k, in the last three months. Overall, we don't think these recent trades are particularly informative, one way or the other.

Insider Ownership of ICA Gruppen

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. We usually like to see fairly high levels of insider ownership. It appears that ICA Gruppen insiders own 1.0% of the company, worth about kr851m. 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 ICA Gruppen Insider Transactions Indicate?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like ICA Gruppen insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ICA Gruppen. To that end, you should learn about the 2 warning signs we've spotted with ICA Gruppen (including 1 which is a bit concerning).

But note: ICA Gruppen 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.
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