Acroud Insider Confidence Rewarded, Stock Hits kr361m Market Cap

Acroud AB (publ) (STO:ACROUD) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 10.0%, resulting in a kr33m rise in the company's market capitalisation. As a result, the stock they originally bought for €3.3m is now worth €3.8m.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Acroud

Acroud Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Kim Mikkelsen for kr1.8m worth of shares, at about kr1.90 per share. So it's clear an insider wanted to buy, at around the current price, which is kr2.09. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider bought shares at close to current prices. The only individual insider to buy over the last year was Kim Mikkelsen.

Kim Mikkelsen bought a total of 1.80m shares over the year at an average price of kr1.84. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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).

Does Acroud Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 12% of Acroud shares, worth about kr45m, 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 Do The Acroud Insider Transactions Indicate?

The fact that there have been no Acroud insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Acroud and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 3 warning signs for Acroud (1 doesn't sit too well with us) you should be aware of.

But note: Acroud 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.