Insiders Of Hoist Finance Are Up 47% On Their kr15.6m Purchase

Hoist Finance AB (publ) (STO:HOFI) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 18%, resulting in a kr554m rise in the company's market capitalisation, translating to a gain of 47% on their initial investment. As a result, their original purchase of kr15.6m worth of stock is now worth kr22.8m.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Hoist Finance

Hoist Finance Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Executive Chairman Lars Wollung for kr7.3m worth of shares, at about kr31.00 per share. Even though the purchase was made at a significantly lower price than the recent price (kr40.95), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Happily, we note that in the last year insiders paid kr16m for 557.71k shares. On the other hand they divested 235.00k shares, for kr7.3m. In the last twelve months there was more buying than selling by Hoist Finance insiders. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Hoist Finance is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Hoist Finance Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Hoist Finance insiders own 8.2% of the company, worth about kr300m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Hoist Finance Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Hoist Finance shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like Hoist Finance insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. 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. You'd be interested to know, that we found 1 warning sign for Hoist Finance 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.