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

In the last year, multiple insiders have substantially increased their holdings of Avanza Bank Holding AB (publ) (STO:AZA) stock, indicating that insiders' optimism about the company's prospects has increased.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See 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 Non-Independent Chairman of the Board Sven Hagströmer bought kr7.3m worth of shares at a price of kr244 per share. We do like to see buying, but this purchase was made at well below the current price of kr335. 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.

Happily, we note that in the last year insiders paid kr8.2m for 33.42k shares. On the other hand they divested 2.50k shares, for kr827k. In total, Avanza Bank Holding insiders bought more than they sold over the last year. 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!

Avanza Bank Holding is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Avanza Bank Holding Insiders Are Selling The Stock

The last three months saw significant insider selling at Avanza Bank Holding. In total, Chief Communications & IR Officer Sofia Svavar sold kr827k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Avanza Bank Holding insiders own 17% of the company, worth about kr9.1b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Avanza Bank Holding Tell Us?

An insider hasn't bought Avanza Bank Holding stock in the last three months, but there was some selling. On the other hand, the insider transactions over the last year are encouraging. And insider ownership remains quite considerable. So we're happy to look past recent trading. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 1 warning sign with Avanza Bank Holding and understanding this should be part of your investment process.

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.