Avanza Bank Holding Insiders Placed Bullish Bets Worth kr33.0m

Over the last year, a good number of insiders have significantly increased their holdings in Avanza Bank Holding AB (publ) (STO:AZA). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

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.

View our latest analysis for Avanza Bank Holding

The Last 12 Months Of Insider Transactions At Avanza Bank Holding

In the last twelve months, the biggest single purchase by an insider was when Independent Chairman of the Board Sven Hagströmer bought kr21m worth of shares at a price of kr202 per share. Even though the purchase was made at a significantly lower price than the recent price (kr239), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months insiders purchased 160.46k shares for kr33m. But they sold 3.50k shares for kr816k. Overall, Avanza Bank Holding insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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).

Avanza Bank Holding Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Avanza Bank Holding. Independent Director Hans Toll spent kr933k on stock, and there wasn't any selling. That shows some optimism about the company's future.

Does Avanza Bank Holding 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. Avanza Bank Holding insiders own about kr6.5b worth of shares (which is 17% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Avanza Bank Holding Insider Transactions Indicate?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Avanza Bank Holding. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for Avanza Bank Holding you should be aware of.

But note: Avanza Bank Holding 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 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.