Actic Group Insiders Enjoying kr3.0m Appreciation On kr25.5m Investment

Last week, Actic Group AB (publ) (STO:ATIC) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 13% last week, resulting in a kr14m increase in the company's market worth, implying a 12% gain on their initial purchase. As a result, the stock they originally bought for kr25.5m is now worth kr28.5m.

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.

Check out our latest analysis for Actic Group

Actic Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Director Goran Carlson for kr25m worth of shares, at about kr4.74 per share. Even though the purchase was made at a significantly lower price than the recent price (kr5.30), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Happily, we note that in the last year insiders paid kr25m for 5.37m shares. But insiders sold 5.35m shares worth kr25m. Overall, Actic Group insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Actic Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Are Actic Group Insiders Buying Or Selling?

There was some insider buying at Actic Group over the last quarter. They bought kr25m worth in that time. But Director Goran Carlson sold kr25m worth. While it's good to see the insider buying, the net amount bought isn't enough for us to gain much confidence from it.

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. We usually like to see fairly high levels of insider ownership. Our data indicates that Actic Group insiders own about kr16m worth of shares (which is 14% of the company). But they may have an indirect interest through a corporate structure that we haven't picked up on. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About Actic Group Insiders?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Actic Group insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Actic Group. You'd be interested to know, that we found 1 warning sign for Actic Group and we suggest you have a look.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 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.