Insider Stock Buying Reaches kr8.17m On Avanza Bank Holding

Quite a few insiders have dramatically grown their holdings in Avanza Bank Holding AB (publ) (STO:AZA) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Avanza Bank Holding

Avanza Bank Holding Insider Transactions Over The Last Year

The Non-Independent Chairman of the Board Sven Hagströmer made the biggest insider purchase in the last 12 months. That single transaction was for kr7.3m worth of shares at a price of kr244 each. That means that even when the share price was higher than kr226 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months insiders purchased 33.42k shares for kr8.2m. But they sold 300.00 shares for kr64k. Overall, Avanza Bank Holding 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

Avanza Bank Holding is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Are Avanza Bank Holding Insiders Buying Or Selling?

There was only a small bit of insider buying, worth kr23k, in the last three months. Looking at the net result, we don't think these recent trades shed much light on how insiders, as a group, are feeling about the company's prospects.

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. Avanza Bank Holding insiders own 17% of the company, currently worth about kr6.2b based on the recent share price. 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 Does This Data Suggest About Avanza Bank Holding Insiders?

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. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Avanza Bank Holding 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. While conducting our analysis, we found that Avanza Bank Holding has 1 warning sign and it would be unwise to ignore it.

Of course Avanza Bank Holding may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.