L E Lundbergföretagen AB (publ) (STO:LUND B) shareholders (or potential shareholders) will be happy to see that the President, Fredrik Lundberg, recently bought a whopping kr36m worth of stock, at a price of kr463. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 0.3%.
L E Lundbergföretagen Insider Transactions Over The Last Year
In fact, the recent purchase by Fredrik Lundberg was the biggest purchase of L E Lundbergföretagen shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being kr461). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. 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.
While L E Lundbergföretagen insiders bought shares during the last year, they didn't sell. 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!
L E Lundbergföretagen is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does L E Lundbergföretagen Boast High 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. L E Lundbergföretagen insiders own about kr81b worth of shares (which is 71% 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.
What Might The Insider Transactions At L E Lundbergföretagen Tell Us?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest L E Lundbergföretagen insiders are well aligned, and quite possibly think the share price is too low. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing L E Lundbergföretagen. To that end, you should learn about the 3 warning signs we've spotted with L E Lundbergföretagen (including 1 which can't be ignored).
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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