As Betsson AB's (STO:BETS B) market cap increased kr539m, insiders who bought last year may be reflecting on buying more

By
Simply Wall St
Published
May 17, 2022
OM:BETS B
Source: Shutterstock

Insiders who bought Betsson AB (STO:BETS B) stock in the last 12 months were richly rewarded last week. The company's market value increased by kr539m as a result of the stock's 6.3% gain over the same period. Put another way, the original €3.4m acquisition is now worth €3.6m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Betsson

Betsson Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the CEO, President & Executive Director, Pontus Lindwall, sold kr1.7m worth of shares at a price of kr86.27 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of kr66.16. So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Pontus Lindwall. Notably Pontus Lindwall was also the biggest buyer, having purchased kr3.4m worth of shares.

Happily, we note that in the last year insiders paid kr3.4m for 54.00k shares. But insiders sold 20.00k shares worth kr1.7m. In total, Betsson insiders bought more than they sold over the last year. Their average price was about kr62.41. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent 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!

insider-trading-volume
OM:BETS B Insider Trading Volume May 17th 2022

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 Betsson Boast High 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. Insiders own 2.2% of Betsson shares, worth about kr198m. 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 Betsson Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Betsson insiders think the business has merit. 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. Every company has risks, and we've spotted 1 warning sign for Betsson you should know about.

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, but not derivative transactions.

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